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Tutorial 27044

Tyson Company has a pre-tax net cash inflow of $1,200,000. The company can claim depreciation expense of $500,000 this year. The company is subject to...

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Question:

Tyson Company has a pre-tax net cash inflow of $1,200,000. The company can claim depreciation expense of $500,000 this year. The company is subject to a combined income tax rate of 26%. What is the after-tax cash flow for the year?

a)      $700,000.

b)      $1,018,000.

c)       $182,000.

d)      $370,000.

e)      $1,200,000.

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