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 A | Project B | |
Expected sales | $1,000 | $1,500 |
Cash operating expense | 400 | 700 |
Depreciation | 150 | 250 |
Tax rate | 30% | 30% |