If pre-tax cash flow is $100,000 and the tax rate is 20%,after-tax cash flow is:

Name: If pre-tax cash flow is $100,000 and the tax rate is 20%,after-tax cash flow is:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

After-tax cash flow can be calculated by subtracting the taxes from pre-tax cash flow.

Taxes = 20% of $100,000 = $20,000

After-tax cash flow = Pre-tax cash flow - Taxes 
= $100,000 - $20,000 
= $80,000

Therefore, the correct answer is B) $80,000.

If Pre-Tax Cash Flow Is $100,000 and the Tax Rate