Question

ool Proof Software is considering a new project whose data are shown below. The equipment that will be used has a 3-year class life and will be depreciated by the MACRS depreciation system. Revenues and Cash operating costs are expected to be constant over the project's 10-year life. What is the Year 1 after-tax net operating cash flow? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box. Equipment cost (depreciable basis) $85,000 Sales revenues, each year $80,000 Cash operating costs $29,000 Tax rate 25.0%

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

- Home ert Page Layout Formulas Data Review V Add-Ins s Cut aCopy Format Painter AutoSum Fill в 1 프 .-. h. Α. ǐEE론困Merge & Center. $, % , conditional Format . Cell Formatting ▼ as Table-styles ▼ Insert Delete Format Ξ Sort &Find & Filter Select 袖 2 Clear , ▼ ▼ ▼ Clipboard Font Alignment Cells dting YN294 YL YN YO YP YR YS YT YU YV YX 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 COST 85000 YEAR MACRS DEPRECIATION BOOK VALUE COST -DEPRE 33.33 44.45 14.81 7.41 28330.50 37782.50 12588.50 6298.50 56669.50 18887.00 6298.50 0.00 4 calculation of operating cash flow sales costs depreciation INCOME BEFORE TAXES TAXES NET INCOME depreciation net operating cash flow 29000 28330.50 22669.50 5667.375 17002.13 28330.50 45332.63 25% answer TS HPR GMAM EAC MACRS LEASE RATIOCASHBUDGET w acc BOND ndffEPS EBIT REPLACEMENT STats NPV BETA LEVERED Sheet1 Sheet2 Sheet3 erences: DX15 29-03-2019