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Forrester Inc

Question 27

Multiple Choice

Forrester Inc. purchased a $150,000 machine that has a five-year life and no salvage value. The company uses straight-line depreciation on all asset acquisitions and is subject to a 20% tax rate. The proper cash flow to show in a discounted-cash-flow analysis as occurring at time 0 would be:


A) $(150,000) .
B) $(120,000) .
C) $(30,000) .
D) $30,000.
E) $150,000.

Correct Answer:

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