Kellman Corporation.faces a marginal tax rate of 35 percent.One project that is currently under evaluation has a cash flow in the fourth year of its life that has a present value of $10,000 (after-tax) .Kellman Corporation.assumes that all cash flows occur at the end of the year and the company uses 11 percent as its discount rate.What is the pre-tax amount of the cash flow in year 4? (Round to the nearest dollar.) Present value tables or a financial calculator are required.
A) $15,181
B) $23,356
C) $ 9,868
D) $43,375
Correct Answer:
Verified
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