Monu Enterprises received $9,000 cash from the sale of a machine that had a $13,000 book value. If the company is subject to a 25% income tax rate, the net Icash flow to use in a discounted-cash-flow analysis would be: A. $3,000 B. $6,750 C. $7,750 D. $9,000 E. $10,000

Monu Enterprises received $9,000 cash from the sale of a machine that had a $13,000 book value. If the company is subject to a 25% income tax rate, the net Icash flow to use in a discounted-cash-flow analysis would be: A. $3,000 B. $6,750 C. $7,750 D. $9,000 E. $10,000

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...

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Question

5 PTS

Monu Enterprises received $9,000 cash from the sale of
a machine that had a $13,000 book value. If the
company is subject to a 25% income tax rate, the net
Icash flow to use in a discounted-cash-flow analysis
would be:
A. $3,000
B. $6,750
C. $7,750
D. $9,000
E. $10,000

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