Refer the attached table for calculation of CFAT
Depreciation charges 1st year= $ 400 × 0.3333 = $ 133.32
2nd year = $ 400 × 0.4445 = $ 177.80
Like wise we can determine for all the years.
Taxable income (TI) = CFBT - Depreciation
Tax = Taxable Income × 0.21
CFAT = CFBT - Tax
Calculating the present worth
Please contact if having any query will be oblige foto you for your generous support. Your help mean a lot to me, please help. Thank you.
No excel. 14. (4 pts) A special power tool for plastic products costs $400, has a...
5.(20 pts) A special power tool for plastic products is classified $6,500, has a salvage value of $800 when sold at the end of 5 years, uniform annual end-of-ycar benefits (before tax) of $3,500 per year, and uniform annual operating and maintenance costs (before tax) of $1,200 per year. Compute the after-tax present worth (for an MARR of 10% ) , based on MACRS depreciation and a 34% corporate income tax rate. (MACRS percentages for a three-year property are 33.33%,...
5.(20 pts) A special power tool for plastic products is classified $6,500, has a salvage value of $800 when sold at the end of 5 years, uniform annual end-of-ycar benefits (before tax) of $3,500 per year, and uniform annual operating and maintenance costs (before tax) of $1,200 per year. Compute the after-tax present worth (for an MARR of 10% ) , based on MACRS depreciation and a 34% corporate income tax rate. (MACRS percentages for a three-year property are 33.33%,...
2. A special power tool (costs $200,000) with a 5-year MACRS life and no salvage is to be used for 10 years. Compute the after-tax present worth based on a 24% income tax rate and a MARR of 18%. Year 0 1 2 3 4 5 6 7 8 9 10 BTCF -200000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44,000 44.000
Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $195,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $132,000, variable costs of $35,500, and fixed costs of $12,850. The project will also require net working capital of $3,450 that will be returned at the end of the project....
Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $173,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $110,000, variable costs of $27,700, and fixed costs of $12,300. The project will also require net working capital of $2,900 that will be returned at the end of the project....
Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $173,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $110,000, variable costs of $27,700, and fixed costs of $12,300. The project will also require net working capital of $2,900 that will be returned at the end of the project....
Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $163,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $100,000, variable costs of $27,450, and fixed costs of $12,050. The project will also require net working capital of $2,650 that will be returned at the end of the project....
Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $201,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $138,000, variable costs of $37,300, and fixed costs of $13,000. The project will also require net working capital of $3,600 that will be returned at the end of the project....
Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $159,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $96,000, variable costs of $27,350, and fixed costs of $11,950. The project will also require net working capital of $2,550 that will be returned at the end of the project....
Bad Company has a new 4-year project that will have annual sales of 7,900 units. The price per unit is $19.40 and the variable cost per unit is $7.15. The project will require fixed assets of $89,000, which will be depreciated on a 3-year MACRS schedule. The annual depreciation percentages are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. Fixed costs are $29,000 per year and the tax rate is 35 percent. What is the operating cash flow...