Coulter Company is studying a capital project that will produce $600,000 of added sales revenue, $400,000 of additional cash operating expenses, and $50,000 of depreciation. Assuming a 30% income tax rate, the company's after-tax cash inflow (outflow) is:
A. $125,000.
B. $105,000.
C. $155,000.
D. $175,000.
E. None of the answers is correct.
Answer: C
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