When performing an after tax cash flow analysis

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Reference no: EM131919900

When performing an after tax cash flow analysis, in the last year salvage value is consitered a positive before tax cash flow. When computing the after tax cash flow, which of the following statements is correct:

a) Depreciation is subtracted from salvage value to compute taxable income

b) Since salvage value is consitered income, tax is paid on it

c) Although salvage value is consitered income, tax is NOT paid on it

Reference no: EM131919900

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