before-tax and after-tax cash flows. ​

Anonymous
timer Asked: Oct 2nd, 2018
account_balance_wallet $60

Question description

Your company may buy a used pick-up for $15,000. During the truck's five year useful life, it is estimated the firm will save $4,000 per year after all of the costs of owning and operating the truck have been paid. The truck's salvage value is estimated to be $3,000. Assume straight line depreciation and a tax rate of 35%. Assume r of 10%.

create before-tax and after-tax cash flows.

Tutor Answer

Juniper
School: University of Virginia

Hello buddy, kindly find your excel worksheet attached below. Let me know what you think. Thank you

Intial cost
Marginal tax rate
MARR
MARCS
Year

$100.000
40%
9%
7-year property

0,4
0,09

Initial Cost Operati...

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Review

Anonymous
Outstanding Job!!!!

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