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The Wet Corp. has an investment project that will reduce expenses by $25,000 per year for 3 years. The project's cost is $30,000. If the asset is part of the 3-year MACRS category (33.33% first year depreciation) and the company's tax rate is 26%, what is the cash flow from the project in year 1? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)
A. $21,100
B. $22,560
C. $20,550
D. $21,880
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Answers: 2
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The Wet Corp. has an investment project that will reduce expenses by $25,000 per year for 3 years. T...
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