Determine the annual estimated after-tax net income

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Question - A manufacturing company is considering investing $ 600,000 in new equipment with an estimated useful life of 10 years and no salvage value. The equipment is expected to produce $ 240,000 in cash inflows and $ 160,000 in cash outflows annually. The company uses straight-line depreciation, and has a 40% tax rate. Determine the annual estimated after-tax net income.

Reference no: EM132440656

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