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A company is considering two projects, which have the following details:

Which project would provide the largest after-tax cash inflow?Project A becauseProject A becauseProject B becauseProject B becauseafter-tax cash after-tax cash after-tax cash after-tax cashinflow equals $465. inflow equals $315. inflow equals $635. inflow equals $385.

Project AProject B
Expected sales$1,000$1,500
Cash operating expense400700
Depreciation150250
Tax rate30%30%

A. Project A because after-tax cash inflow equals $465.
B. Project A because after-tax cash inflow equals $315.
C. Project B because after-tax cash inflow equals $635.
D. Project B because after-tax cash inflow equals $385.
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