1)A company is considering the purchase of some equipment. In the second year of operation, it is expected that the equi
Posted: Sun Apr 17, 2022 6:21 pm
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
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