Homework Answers
1:
| Year | Net cash flow before tax |
| 0 | -125000 |
| 1 | $270,000.00 |
| 2 | $267,000.00 |
| 3 | $263,700.00 |
| 4 | $260,070.00 |
| 5 | $256,077.00 |
2:
| Year | Taxes |
| 0 | |
| 1 | $83,300.00 |
| 2 | $77,180.00 |
| 3 | $81,498.00 |
| 4 | $83,527.80 |
| 5 | $82,170.18 |
3:
| Year | Cash flowsafter tax |
| 0 | -125000 |
| 1 | $186,700.00 |
| 2 | $189,820.00 |
| 3 | $182,202.00 |
| 4 | $176,542.20 |
| 5 | $173,906.82 |
Workings: For 5 years, MACRS 5 year depreciation rates are used.
| Year | Initial cost | Revenue | operating cost | Net cash flow before tax | Depreciation | Profit before tax | Taxes | Profit after tax | Cash flowsafter tax |
| 0 | -125000 | -125000 | -125000 | ||||||
| 1 | 300000 | $30,000.00 | $270,000.00 | $25,000.00 | $245,000.00 | $83,300.00 | $161,700.00 | $186,700.00 | |
| 2 | 300000 | $33,000.00 | $267,000.00 | $40,000.00 | $227,000.00 | $77,180.00 | $149,820.00 | $189,820.00 | |
| 3 | 300000 | $36,300.00 | $263,700.00 | $24,000.00 | $239,700.00 | $81,498.00 | $158,202.00 | $182,202.00 | |
| 4 | 300000 | $39,930.00 | $260,070.00 | $14,400.00 | $245,670.00 | $83,527.80 | $162,142.20 | $176,542.20 | |
| 5 | 300000 | $43,923.00 | $256,077.00 | $14,400.00 | $241,677.00 | $82,170.18 | $159,506.82 | $173,906.82 | |
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I need this solved step by by step please by hand. Please no Excel. Thank You!...
I
need this solved step by by step please by hand. Please no Excel.
Thank You!
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need this solved step by by step please by hand. Please no Excel.
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