Question

What did I do wrong?

Dep Tax 5. (5 pts) Given the Before Tax Cash Flow (BTCF) below and equipment purchase bcS200K.! what is the After Tax Cash Flow (ATCF)? Use SOYD depreciation, a 4 year life, and an estimated salvage value then of $50K. The equipment is actually sold in year 4 for $60K. Jax rate is 40%. Fill out the tables. nanti) 46/ BTCF ATCF -200K - 200k 80K 140 160% -60-20K 20 KBK Toy K 12K SOK aok 45k 115 635k 6k 14k 86k 66k SOK 66k Bot 15 A 50K SOK -6k auk 74k Gok 50 KIB GOK 30 K c5k - 12 K22k 685 Suk. lok X 4k 56k 56k Dep BV 200k 4/10 (150) -60k 3/10(150): 45k 210 150): 30k 1/10(150 m2 15k luok ask 65k 50k

Please provide formulas and explanation to see what I did wrong and no excel please, thank you!

Answer 1

Year BTCF Dep 12 Tax@ 407 ATCE - 200k Box -2006 - 80K ek Gok 20K 8K tak ro sok 30 45k 35k 14K 66K SOK A co 30K 50K 20K 60k sok 15k 65K 26K 54k - GOK 6ok 24K 36K 71 - BTCF - Dep Tax = T2x 40% ATCE a BTCF - Pax Yeau Dep BY 200k 14014 95k x 150 - 60k y 8x 150 - 4616 1 x60 - 30k 1 x 150 = 156 65u 50k Mistakes in you Puesentation 1. you have taken BV in Deputaciohon colomn. youd Should Dep values in each year å effected botn II and Tax coloms alo. 2 ATCF Shoud alcoays be leg than 8ic becatur eis ohtee de duchon of tax hom BICE Poemula used by you 2 ml - Tax value , - Dep-value ATCR 4 Complete cowong Dep value de noting to do coith ATCE ATCF - BTCF - Tax