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3. A company wishes to estimate its Tax Liabilities from a proposed project, while estimating its losses from the depreciation from purchased equipment. It decides to use a straight-line depreciation technique rather than the government tables with a realistic 10-year life time rather than mandated schedules. Initial Cost is 4 million. Income Tax rate from all sources will be .35. Before Tax Revenue is estimated to be 800,000 per year the first year and 50,000 greater each year thereafter for the 10-year period. Salvage value will be 500,000. Analyze this estimated situation showing yearly depreciation, Taxable income Taxes, Before Taxs Cash Flow and After- Tax Cash Flow. In the interests of time do this for the first 6 years only
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