FI 602 CHAPTER 12 - MACRS 3 120,500 * 0.35 0.33 39765...

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PROBLEM 12.2 PROBLEM 12.4 PROBLEM 12.6 project sales 10000000 New equipment 108,000 (cost) operation costs 7000000 modify cost 12,500 cost depreciation 2000000 3 year value 65,000 add cases interest expense 2000000 inventory 5,500 sales price saving 44,000 cost per case op inc/taxes 1000000 tax %35 tax rate taxable %40 400000 cost rise op inc after tax 600000 price equity cost of capita cost 108,000 op inc after tax 600000 modify 12,500 sales depreciation 2000000 inventory 5,500 cost of case cash 2600000 cost of equiment 126,000 net charge cash 126,000 TAX %34 after tax saving 44,000 0.65 net after tax (1-0.35)=0.65 28600 depreciation 126,000 5,500 equity cost of capita 120,500 no inflation no inflation
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Unformatted text preview: MACRS 3 120,500 * 0.35 0.33 39765 13917.75 (1+r)(1+i)=1.15 0.45 54225 18978.75 (1+r)(1.06)=1.15 0.15 18075 6326.25 0.93 with inflation 120,500 0.07 with inflation 8435 tax 56,565 0.35 19797.75 salvage val 65,000 taxes 19,798 5,500 cash flow 50,702 1 2 3 after tax saving 28,600 28,600 28,600 deprec, tax savin 13,918 18,978 6326 42,518 47,578 34,926 years net cash flow PV of senario 126,000 126,000 1 42,518 37,963 2 47,578 37,963 3 85,628 60,948 150,000 1000 138 105 %34 %6 %15 138000 105000 33000 11220 21780 0.15-150,000 145200-4,800 r=0.0849 0.08-150,000 256537.1 106,537...
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FI 602 CHAPTER 12 - MACRS 3 120,500 * 0.35 0.33 39765...

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