Rogers Inc. plans to generate $800,000 in sales revenue from a capital project. Assuming a 25% tax rate, how should this revenue be reflected in the capital budgeting analysis? Options: a. $600,000 inflow b. $200,000 outflow c. $600,000 outflow d. $800,000 inflow e. $200,000 inflow

Rogers Inc. plans to generate $800,000 in sales revenue from a capital project. Assuming a 25% tax rate, how should this revenue be reflected in the capital budgeting analysis? Options: a. $600,000 inflow b. $200,000 outflow c. $600,000 outflow d. $800,000 inflow e. $200,000 inflow

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...

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Rogers Inc. plans to generate $800,000 in sales
revenue from a capital project. Assuming a 25%
tax rate, how should this revenue be reflected in
the capital budgeting analysis?
Options:
a. $600,000 inflow
b. $200,000 outflow
c. $600,000 outflow
d. $800,000 inflow
e. $200,000 inflow

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