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o/ 1pts Incorrect Question 1 Given the ATCF table below, fill in the blanks. Use the straight line depreciation method to cal

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Answer #1

Solution:

Answer 1. ATCF = -10001 (rounded up to an integer value). since after tax cash flow at year 0 would be the initial investment cost and remained same as BTCF.

Answer 2. year 1-4 Depreciation (Depn) = $10,001 / 4 = 2500

Answer 3. Taxable income (TaxInc.) = 3500.45 - 2,500 = 1000

Answer 4. Tax = 1000×30% = 300

Answer 5. ATCF = 1000 - 300 = 700

note: All answers are rounded off as per requirement of question.

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