Eureka Company is considering replacing an old computer with a new computer. The following data relate to this investment decision:
The new computer will belong to Class 10 with a maximum CCA rate of . The income tax rate is also , and the company's after-tax cost of capital is .
- What is the approximate present value of the after-tax non-operating cash inflows that will occur in Year 6? (Do not round your intermediate calculations and round your final answer to the nearest whole number.)
A) $1,064.
B) $1,773.
C) $2,077.
D) $2,533.
Correct Answer:
Verified
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