Disquotek is a software manufacturer. Managers are considering a new equipment proposal. The income tax rate is 40%, and the discount rate is 10%. The following data are available: What is the relevant after-tax cash flow associated with disposing of the new equipment at its salvage value in 8 years?
A) $2,000
B) $1,200
C) $0
D) $800
Correct Answer:
Verified
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