Net Cash Flow and After tax cash flow

FratBro23
Category:
Business & Finance
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.


Tutor Answer

(Top Tutor) Daniel C.
(997)
School: University of Virginia
PREMIUM TUTOR
Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1827 tutors are online

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