1)A company is considering the purchase of some equipment. In the second year of operation, it is expected that the equi

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answerhappygod
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1)A company is considering the purchase of some equipment. In the second year of operation, it is expected that the equi

Post by answerhappygod »

1)A company is considering the purchase of some equipment. In
the second year of operation, it is expected that the equipment
will cause an increase in sales revenue of $200,000 and an increase
in cash expenses of $120,000. CCA for the equipment will be
$60,000. The tax rate for the company is 40%. What is the effect on
cash flow from the equipment in Year 2? a)$0 b)$12,000 c)$48,000
d)$72,000
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