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A given project requires the acquisition of a capital assets purchased outright in year o totaling $100 Million. The company

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Answer #1

BTCF = 50m - 12m - 5m = 33m

Depreciation in year 1 = 100m * 0.2 = 20m

Taxable income = 33m - 20m = 13m

Tax = 13m * 0.25 = 3.25m

ATCF = 33m - 3.25m = 29.75m

Fourth option is correct answer

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