(Appendix 8C)Onorato 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 2 is:
A)$133, 000
B)$160, 000
C)$90, 000
D)$98, 000

Question

(Appendix 8C)Onorato 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 2 is:
A)$133, 000 
B)$160, 000 
C)$90, 000 
D)$98, 000

Quizplus · Accepted Answer

Depreciation expense = (Original cost - Salvage value)÷ Useful life
= ($280, 000 - $0)÷ 4 years = $70, 000 per year
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(Appendix 8C)Onorato Corporation Has Provided the Following Information Concerning a Capital