(Appendix 8C)Croes Corporation has provided the following information concerning a capital budgeting project: The company uses straight-line depreciation on all equipment. The total cash flow net of income taxes in year 3 is:
A)$116, 000
B)$80, 000
C)$74, 000
D)$56, 000

Question

(Appendix 8C)Croes Corporation has provided the following information concerning a capital budgeting project:  The company uses straight-line depreciation on all equipment. The total cash flow net of income taxes in year 3 is:
A)$116, 000 
B)$80, 000 
C)$74, 000 
D)$56, 000

Quizplus · Accepted Answer

Depreciation expense = (Original cost - Salvage value)÷ Useful life
= ($240, 000 - $0)÷ 4 years = $60, 000 per year
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(Appendix 8C)Croes Corporation Has Provided the Following Information Concerning a Capital