ISE 460 PW1 10.1

ISE 460 PW1 10.1 - ISE460 Fall 2007 Chapter 10 09/09/2009...

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Unformatted text preview: ISE460 Fall 2007 Chapter 10 09/09/2009 Page 1 Example10.1 Cost Basis $125,000 Type 7Year MACRS Income Tax rate 40% MARR 15% Year 1 2 3 4 5 Income Statement Revenues: $100,000 $100,001 $100,002 $100,003 $100,004 Expenses: Labor 20,000 20,000 20,000 20,000 20,000 Material 12,000 12,000 12,000 12,000 12,000 Overhead 8,000 8,000 8,000 8,000 8,000 Depreciation 17,857 30,612 21,866 15,618 5,578 0.5*VLOOKUP(H6,'C:\AAdata\CURRENT\allclasses\[MACRS.XLS]Table 10.3'!$A$1:$AM$41,$C$3)*$C$2 Taxable Income $42,143 $29,389 $38,136 $44,385 $54,426 H10-SUM(H12:H15) Income taxes $16,857 $11,756 $15,254 $17,754 $21,770 H16*$C$4 Net Income $25,286 $17,633 $22,882 $26,631 $32,656 H16-H17 Cash Flow Statement Operating Activities Net Income 25,286 17,633 22,882 26,631 32,656 H19 Depreciation 17,857 30,612 21,866 15,618 5,578 H15 Investment Activities Investment ($125,000) Salvage 50,000 Gains Tax ($6,613) C4*(-H28+H33) Net Cash Flow ($125,000) $43,143 $48,245 $44,748 $42,249 $81,621 SUM(H24:H30) Book Value $107,143...
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This note was uploaded on 08/30/2009 for the course ISE 460 taught by Professor Bottlik during the Fall '06 term at USC.

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ISE 460 PW1 10.1 - ISE460 Fall 2007 Chapter 10 09/09/2009...

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