Homework Answers
| Before tax cash flows | $10,000 |
| Tax @ 21% | -$8,400 |
| After tax cash flows | $ 1,600 |
Note:
Tax calculate on Sale value of $ 40,000 @ 21%, because information
is not clear to find out income made out of sale, if cost of sale
is inventory of $ 15,700 then tax will be different.
Income will be $ 40,000 - $ 15,700 = $ 24,300.
Then cash out will be $ 24,300*21% = $ 5,103.
Add Answer to:
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Company G is the party to the contract and provides the services to
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