Question - Onorato Corporation has provided the following information concerning a capital budgeting project:
Tax Rate 30%
Expected Life of Project 4
Investment required in equip $280,000
Salvage $0
Annual Sales $600,000
Annual Cash Operating Expenses $440,000
The company uses straight-line depreciation on all equipment. How much is the total cash flow net of income taxes in year 2?
A. $160,000
B. $133,000
C. $98,000
D. $90,000