If a company is operating at a profit,all cash inflows associated with an investment project should be multiplied by one minus the tax rate to be placed on an after-tax basis.

Question

Quizplus · Accepted Answer

Not all cash inflows are subject to taxes; for example, loan proceeds and sale of assets might not be taxed as income. Only the inflows that are considered taxable income should be adjusted for taxes.

If a Company Is Operating at a Profit,all Cash Inflows