Multiple Choice
Alpine Company is analyzing two investment projects: P and Q. The following data are available:
The computer equipment for Project P will have a total salvage value of $8,000 at end of eight years. It will belong to Class 10 with a 30% maximum CCA rate. At the end of eight years, the working capital for Project Q will be released for use elsewhere. The income tax rate is 30% and Alpine's after-tax cost of capital is 10%.
-What is the approximate present value of the after-tax net annual operating cash inflows for Project P?
A) $32,010.
B) $53,074.
C) $74,690.
D) $106,699.
Correct Answer:
Verified
Correct Answer:
Verified
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