Manjarrez Corporation has provided the following information concerning a capital budgeting project: Investment required in equipment$240,000 Expected life of the project 4 Salvage value of equipment$0 Annual sales$560,000 Annual cash operating expenses$430,000 The company's income tax rate is 30% and its after-tax discount rate is 6%. The company uses straight-line depreciation on all equipment.Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.The income tax expense in year 2 is:
A. $18,000
B. $21,000
C. $129,000
D. $168,000
Answer: B
You might also like to view...
A fourth-party logistics provider (4PL) is ______.
A. the merger of two 2PL companies B. an independent supply chain integrator C. a subcontractor for a third-party logistics provider D. a contractor that government regulations require on a project
Rule 10b-5 of the Securities and Exchange Act is an antifraud statute that prohibits investor relations people from disseminating false or misleading information to investors
Indicate whether the statement is true or false
Use the information in Table 10.3. The total cost of the staffing plan, including the cost of regular wages, hiring, and layoffs, using a chase strategy with hiring and layoffs but no overtime, is:
A) less than or equal to $125,000. B) greater than $125,000 but less than or equal to $125,500. C) greater than $125,500 but less than or equal to $126,000. D) greater than $126,000.
Those people who do not have the legal and mental ability to enter into binding contracts are said to be ____________________
Fill in the blank(s) with correct word