A machine is expected to produce annual savings in cash operating costs of $400,000 for the next six years. If the company has a 10% after-tax hurdle rate and is subject to a 30% income tax rate, the correct discounted net cash flow would be:
A) $522,600.
B) $947,520.
C) $1,219,400.
D) $1,680,000.
E) $1,742,000.
Correct Answer:
Verified
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