Question

An asset in the freya MACRS property classes $150.000 and has arrested age where years of 550.000 in material expenses. There are no other revenues and expenses. Assume a taxe of 25 the w ere revenues of $120.000 Click the icon to view the MACRS depreciation schedules Click the icon to view the where factors for discrete compounding when i 12 per year Computerach o t her in the below Round two decimal places) ProdNet AtTax Cash Flow $ 150 thousand sand 5 852 and 5872 thousand

Answer 1

Year	0	1	2	3	4	5	6
cost of machine	-150000
Annual revenue		320000	320000	320000	320000	320000	320000
annual material expense		80000	80000	80000	80000	80000	80000
annual labor expenses		50000	50000	50000	50000	50000	50000
annual depreciation		30000	48000	28800	17280	17280	8640
operating profit		160000	142000	161200	172720	172720	181360
less taxes-25%		40000	35500	40300	43180	43180	45340
after tax profit		120000	106500	120900	129540	129540	136020
add depreciation		30000	48000	28800	17280	17280	8640
after tax cash flow		150000	154500	149700	146820	146820	144660