Uzzle Corporation uses a discount rate of 10% and has a tax rate of 30%. The following cash flows occur in the last year of an 8-year equipment selection investment project:
The assumed salvage value was zero when the depreciation deductions were computed for tax purposes. The total after-tax present value of the cash flows above is closest to:

Question

Uzzle Corporation uses a discount rate of 10% and has a tax rate of 30%. The following cash flows occur in the last year of an 8-year equipment selection investment project: 
The assumed salvage value was zero when the depreciation deductions were computed for tax purposes. The total after-tax present value of the cash flows above is closest to:

Quizplus · Accepted Answer

The Answer of Uzzle Corporation uses a discount rate of 10% and has a tax rate of 30%. The following cash flows occur in the last year of an 8-year equipment selection investment project: 
The assumed salvage value was zero when the depreciation deductions were computed for tax purposes. The total after-tax present value of the cash flows above is closest to:

Uzzle Corporation Uses a Discount Rate of 10% and Has