17. (WORTH MORE) Bonilla buys new ice cream making equipment. The machine was placed into service on Jan 12022 for$10,000and all current laws are in effect. The entire cost is put on a credit card with a10%interest rate, and Bonitla will pay of the credit card January 1,2023 . The machine will produce a$6,000positive, taxable cash flow each year starting in 2023. Assuming Bonilla's tax rate is21%, what is the after-tax cash flow in 2022 on this machine? A.−10,000 B.−840 C.+1,310 D.+2,100 E. None of the Above
17. (WORTH MORE) Bonilla buys new ice cream making equipment. The machine was placed into service on Jan 12022 for$10,000and all current laws are in effect. The entire cost is put on a credit card with a10%interest rate, and Bonitla will pay of the credit card January 1,2023 . The machine will produce a$6,000positive, taxable cash flow each year starting in 2023. Assuming Bonilla's tax rate is21%, what is the after-tax cash flow in 2022 on this machine? A.−10,000 B.−840 C.+1,310 D.+2,100 E. None of the Above
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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17. (WORTH MORE) Bonilla buys new ice cream making equipment. The machine was placed into service on Jan 12022 for$10,000and all current laws are in effect. The entire cost is put on a credit card with a10%interest rate, and Bonitla will pay of the credit card January 1,2023 . The machine will produce a$6,000positive, taxable cash flow each year starting in 2023. Assuming Bonilla's tax rate is21%, what is the after-tax cash flow in 2022 on this machine?
A.−10,000
B.−840
C.+1,310
D.+2,100
E. None of the Above
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