What is the undiscounted cash flow in the final year of an investment, assuming: 10,000 after-tax cash flows from operations, the fully depreciated machine, the sole asset in the pool, is sold for $1,000, the project had required $2,000 in additional working capital, and a 35 percent tax rate?

A) $14,000
B) $12,600
C) $12,650
D) $8,450

Ans: C) $12,650

Business

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