Coffie Corporation has provided the following information concerning a capital budgeting project: Tax rate 30%Expected life of the project 4 Investment required in equipment$160,000 Salvage value of equipment$0 Annual sales$440,000 Annual cash operating expenses$310,000 The company uses straight-line depreciation on all equipment.The total cash flow net of income taxes in year 2 is:
A. $103,000
B. $130,000
C. $90,000
D. $75,000
Answer: A
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