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Masja [62]
3 years ago
7

Stanton Inc. is considering the purchase of a new machine, which will reduce manufacturing costs by $5,000 annually and increase

earnings before depreciation and taxes by $6,000 annually. Stanton will use the MACRS method to depreciate the machine, and it has estimated the depreciation expense for the first year as $8,000. Which of the following is the supplemental operating cash flow for the first year if Stanton's marginal tax rate is 40 percent?a. $40,000b. $15,000c. $9,800d. $4,500e. $23,000
Business
1 answer:
Vesnalui [34]3 years ago
7 0

Answer:

80000.3000196

Explanation:

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