The XYZ Company is evaluating a capital budgeting proposal for the current year.The initial investment would be $50,000.It would be depreciated on a straight-line basis over five years with no salvage value.The before-tax annual cash inflow due to this investment is $5,000,and the income tax rate is 40 percent paid in the same year as incurred.The desired after-tax rate of return is 15 percent.All cash flows occur at year-end.
What is the net present value of XYZ's capital-budgeting proposal? Should the proposal be accepted?

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The Answer of The XYZ Company is evaluating a capital budgeting proposal for the current year.The initial investment would be $50,000.It would be depreciated on a straight-line basis over five years with no salvage value.The before-tax annual cash inflow due to this investment is $5,000,and the income tax rate is 40 percent paid in the same year as incurred.The desired after-tax rate of return is 15 percent.All cash flows occur at year-end.
What is the net present value of XYZ's capital-budgeting proposal? Should the proposal be accepted?

The XYZ Company Is Evaluating a Capital Budgeting Proposal for the Current