If the appropriate tax rate is 40%, the after-tax effect of a $100,000 savings in labor cost is _____.
A) $40,000 net after-tax cash outflow
B) $40,000 net after-tax cash inflow
C) $60,000 net after-tax cash outflow
D) $60,000 net after-tax cash inflow
Correct Answer:
Verified
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