Antinoro Corporation has provided the following information concerning a capital budgeting project: After-tax discount rate 12%Tax rate 30%Expected life of the project 4 Investment required in equipment$200,000 Salvage value$0 Working capital requirement$20,000 Annual sales$480,000 Annual cash operating expenses$360,000 One-time renovation expense in year 3$60,000 The company uses straight-line depreciation on all equipment.The income tax expense in year 2 is:
A. $36,000
B. $18,000
C. $3,000
D. $21,000
Answer: D
You might also like to view...
What supporting material would you use to supplement the logos of your persuasive argument?
a. statistics b. quotes c. examples d. all of the above
Which of the following involves accomplishing organizational objectives through planning, organizing, staffing, and controlling?
a. management b. leadership c. empowerment d. delegation e. democratic leadership
Which of the following is NOT an advantage of trade credit?
A) Trade credit is very flexible. B) The amount of extended credit expands and contracts with the needs of the firm. C) The cost of forgoing the discount is less than the prime rate. D) Generally no formal agreements are involved in the extension of trade credit.
John wants to start his own business. After doing some research, he has decided to specialize in cleaning kitchens since most homemakers are not satisfied with the quality of the service offered by the residential cleaning companies. This process of finding a small-but profitable-demand for something and producing a custom-made product or service is known as ________.
A. visual merchandising B. sales promotion C. niche marketing D. out-of-home advertising