Crossword Company Is Studying a Capital Project That Will Produce

Crossword Company is studying a capital project that will produce $600,000 of added sales revenue, $400,000 of additional cash operating expenses, and $50,000 of depreciation. Assuming a 30% income tax rate, the company's after-tax cash inflow (outflow) is:

A) $105,000.
B) $125,000.
C) $155,000.
D) $175,000.
E) None of the other answers are correct.

Correct Answer:

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