question archive Heritage Corporation is trying to decide whether to invest in equipment to manufacture a new product
Heritage Corporation is trying to decide whether to invest in equipment to manufacture a new product
Subject:BusinessPrice: Bought3
Heritage Corporation is trying to decide whether to invest in equipment to manufacture a new product. If the investment project is accepted, sales revenue will increase by $65,000 per year and materials costs will decrease by $16,000 per year. The equipment will cost $140,000 and is depreciable over 10 years using simplified straight line (zero salvage value). The firm has a marginal tax rate of 34%. Calculate the firm's annual cash flows resulting from the new project.
Group of answer choices
35,000
58,220
32,340
23,100
37,100
