# Net Cash Flow and After tax cash flow

FratBro23
Category:
Price: \$15 USD

Question description

Company is planning to buy a machinery at a cost of \$20 million.  This machine will be used for 10 years. The machine will bring additional revenue as follows:

\$10 million for first 6 years and \$7 million for the last 4 years

Expenses = 60% of revenue for all 10 years

After 10 years the machine will be sold for an estimated price of \$2 million and the estimated selling expense is \$400,000.

Tax rate = 20%

A.  Find the net cash flow for t = 0

B.  Find the after tax cash flow for each year from year 1 to year 10.

(Top Tutor) Daniel C.
(997)
School: University of Virginia
Studypool has helped 1,244,100 students

1822 tutors are online

### Related Business & Finance questions

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors