Town Corporation has movided the fonowing information concerning capital budgeting project 5292.000 THvestment required in...

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Accounting

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Town Corporation has movided the fonowing information concerning capital budgeting project 5292.000 THvestment required in equipoent xpected life of the project Salvace value of equipment Annual sales Annual cash operatint expenses (including both variable and fixed expenses) $ 610,000 $430,000 he company income tax rates and its discount rate is 11 The company uses straight line depreciation on all equipment. Assume cash flows occut at the d of the year except for the initial investments. The company takes income taxes into account in its capital budgeting tool arter tax cash flow in year 2 Multiple Choice O 5172.000 5142.300

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