A new machine is expected to produce a MACRS deduction in three years of $50,000.
If the company has a 12% after-tax hurdle rate and is subject to a 30% income tax rate, the correct discounted net cash flow to include in an acquisition analysis would be:
A) $0.
B) $10,680.
C) $24,920.
D) $46,280.
E) None of the other answers is correct.
Correct Answer:
Verified
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