Raymon Company received $7,000 cash from the sale of a machine that had an $11,000 book value. If the company is subject to a 30% income tax rate, the net cash flow to use in a discounted-cash-flow analysis would be: A) $2,100. B) $4,900. C) $5,800. D) $7,000. E) $8,200. Show your complete solution.
Raymon Company received $7,000 cash from the sale of a machine that had an $11,000 book value. If the company is subject to a 30% income tax rate, the net cash flow to use in a discounted-cash-flow analysis would be: A) $2,100. B) $4,900. C) $5,800. D) $7,000. E) $8,200. Show your complete solution.
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 2P
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Transcribed Image Text:Raymon Company received $7,000 cash from the sale of a machine that
had an $11,000 book value. If the company is subject to a 30% income tax
rate, the net cash flow to use in a discounted-cash-flow analysis would be:
A) $2,100.
B) $4,900.
C) $5,800.
D) $7,000.
E) $8,200.
Show your complete solution.
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