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The Lancaster Corporation Has an Annual Cash Inflow from Operations

Question 96

Multiple Choice

The Lancaster Corporation has an annual cash inflow from operations from its investment in a capital asset of $22,000 each year for five years. The corporation's income tax rate is 25%. Calculate the five years total after-tax cash inflow from operations.


A) $10,000
B) $82,500
C) $88,000
D) $110,000

Correct Answer:

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