Homework Answers
| Year | After Tax profit | Depreciation | Cash Flow | |||
| 0 | $ -5,000 | $ - | $ -5,000 | |||
| 1 | $ 750 | $ 400 | $ 1,150 | |||
| 2 | $ 500 | $ 400 | $ 900 | |||
| 3 | $ 300 | $ 400 | $ 700 | |||
| 4 | $ 200 | $ 400 | $ 600 | |||
| 5 | $ - | $ 400 | $ 400 | |||
| Average Annual Income = (750+500+300+200+0)/5 | ||||||
| =$875 | ||||||
| Return On Investment = Average Annual Income / Investement cost | ||||||
| =$875/5000 | ||||||
| ROI | 17.5% | |||||
| Note: Average Investment can be taken for ROI, which is as follows. | ||||||
| Average Investment = (beginning Investment + ending Investment)/2 | ||||||
| = ( $5000+0)/2 | ||||||
| = $ 2500 | ||||||
| ROI = $875/2500 | ||||||
| =35% | ||||||
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Complete the following questions: After Tax Profit, k$ Time, end Depreciation, K$ Cash Flow, K$ year...
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please read questions because its third time no one can help
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please answer the questions
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Depreciation and accounting cash flow A firm in the third year
of depreciating its only asset, which originally cost $173,000 and
has a 5-year MACRS recovery period
, has gathered the following data relative to the current
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Accruals
$15,300
Current assets
117,000
Interest expense
15,200
Sales revenue
413,000
Inventory
69,600
Total costs before depreciation, interest and taxes
297,000
Tax rate on ordinary income
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need help on this. Thank You. Homework: Chapter 7 - Depreciation & After-Tax Analysis Save Score:...
need help on this. Thank You.
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please read questions because its third time no one can help
Depreciation and accounting cash flow A firm in the third year of depreciating its only asset, which originally cost $180,000 and has a 5-year MACRS recovery period A, has gathered the following data relative to the current year's operations: Accruals Current assets Interest expense Sales revenue Inventory Total costs before depreciation, interest and taxes Tax rate on ordinary income $15,000 120,000 15,000 400,000 70,000 290,000 21% a. Use the...
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Depreciation and accounting cash flow A firm in the third year
of depreciating its only asset, which originally cost $173,000 and
has a 5-year MACRS recovery period
, has gathered the following data relative to the current
year's operations:
Accruals
$15,300
Current assets
117,000
Interest expense
15,200
Sales revenue
413,000
Inventory
69,600
Total costs before depreciation, interest and taxes
297,000
Tax rate on ordinary income
21%
a. Use the relevant data to determine the operating cash flow
for the current...
The cash flow for two alternatives is shown in the table below. a) Determine which alternative should be selected based on present worth comparison (use i=10%). b) If your analysis period (study period) is just 3 years, what should be the salvage value of alternative A2 at the end of year 3 to make the two alternatives economically indifferent? A1 Year 0 -900 -400 A2 -1800 -300 -300 1 2 -400 3 -400+200 -300 4 5 6 -300 -300 -300...
need help on this. Thank You.
Homework: Chapter 7 - Depreciation & After-Tax Analysis Save Score: 0 of 1 pt 5 of 7 (0 complete) HW Score: 0%, 0 of 7 pts Problem 7-19 (algorithmic) Question Help A company purchases an industrial laser for $123,000. The device has a useful life of 4 years and a salvage value (market value) at the end of those four years of $60,000. The before-tax cash flow is estimated to be $90,000 per year....
What is the cash flow from assets in year 1?
What is the after-tax salvage value at the end of year 3?
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Hint: add the after-tax salvage value and the recovery of net
working capital.
Intro Lattice Semiconductor is thinking of buying a new machine for $190,000 that would save it $30,000 per year in production costs. The savings would be constant over the project's 3-year life. The machine falls...
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