Book1 - QP8-7 BV COST LIFE END PRETAX NET TAXRATE 1-TAXRATE...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
QP8-7 BV 0 COST 475000 DEPRECIA 95000 LIFE 5 ASV MV+(BV-MU)T END 42000 28980 PRETAX 100000 NET 18000 69000 TAXRATE 0.31 29450 1-TAXRATE 0.69 OCF 98450 RATE 0.11 1.69 QP8-23 Year 0 Year 1 Revenues $60,000.00 DE 20000 Costs $40,000.00 COST 140000 Depreciation 20,000.00 LIFE 7 EBT $0.00 REVENUE 60000 Taxes 0.00 INFLATION 0.06 Net income $0.00 END COST 40000 OCF $20,000.00 INCREAE 0.08 RATE 0.15 Capital spending -140000 TAXRATE 0.34 Total cash flow -140000 $20,000.00 1-TAXRATE 0.66 (1+R)= (1+r)(1+h) -140000 (1+R)= 1.22 $16,406.89 R= 0.22 (1+R)^2 1.49 $13,636.97 (1+R)^3 1.81 $11,318.18 (1+R)^4 2.21 $9,378.21 (1+R)^5 2.69 $7,756.28 (1+R)^6 3.28 $6,401.31 (1+R)^7 4 $5,270.38 ($69,831.78) QP8-15 A B A 0 -50000 -50000 -50000 1 50000 10000 1.1 1.15 45652.17 2 12000 40000 1.2 1.32 10003.78 3 15000 50000 1.31 1.52 11417.36 RATE 0.15 NPV 17073.31 INFLATION 0.05
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
QP8-20 EVF AEH 5000 NUMBER 12 13 COST 9000 65000 END COST 2000 1500 24000 19500 YEAR 4 3 0 600 DE RATE 0.15 0.15 1.15 1.52 -9000 -5000 ¥5,709.96 ¥3,424.84
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 8

Book1 - QP8-7 BV COST LIFE END PRETAX NET TAXRATE 1-TAXRATE...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online