Burry Inc. has provided the following data to be used in evaluating a proposed investment project:
For tax purposes, the entire initial investment without any reduction for salvage value will be depreciated over 5 years. The company uses a discount rate of 11%.
-When computing the net present value of the project,what are the annual after-tax cash receipts?
A) $338,000
B) $168,900
C) $394,100
D) $67,500
Correct Answer:
Verified
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