Chapter 3 (2) - Engagement 1 Engagement 2 Cash Revenues...

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Engagement 1 Engagement 2 Current Year Cash Revenues 150,000.00 200,000.00 Cash Expenses -90,000.00 -65,000.00 Net Cash Flow 60,000.00 135,000.00 Next Year Cash Revenues 150,000.00 125,000.00 Cash Expenses -10,000.00 -65,000.00 Net Cash Flow 140,000.00 60,000.00 Present Value of current year cash flow 60,000.00 135,000.00 Present Value of next year cash flow (cash flow x 0,909 discount factor) 127,260.00 54,540.00 NPV 187,260.00 189,540.00
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Engagement 1 Engagement 2 Current Year Cash Revenues Cash Expenses Net Cash Flow - - Next Year Cash Revenues Cash Expenses Net Cash Flow - - Present Value of current year cash flow Present Value of next year cash flow (cash flow x 0,909 discount factor) - - NPV - -
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Engagement 1 Engagement 2 Current Year Cash Revenues 150,000.00 200,000.00 Deductible Expenses -90,000.00 -65,000.00 Before-tax cash flow/taxable income 60,000.00 135,000.00 Income tax cost at 40% -24,000.00 -54,000.00 After-tax cash flow 36,000.00 81,000.00 Next Year Cash Revenues 150,000.00 125,000.00 Deductible Expenses -10,000.00 -65,000.00 Before-tax cash flow/taxable income 140,000.00 60,000.00 Income tax cost at 40% -35,000.00 -15,000.00 After-tax cash flow 105,000.00 45,000.00 Present Value of current year cash flow 36,000.00 81,000.00 Present Value of next year cash flow (cash flow x 0,909 discount factor) 95,445.00 40,905.00 NPV 131,445.00 121,905.00
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Engagement 1 Engagement 2 Current Year Cash Revenues Deductible Expenses Before-tax cash flow/taxable income - - Income tax cost at 40% - - After-tax cash flow - - Next Year Cash Revenues Deductible Expenses Before-tax cash flow/taxable income
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Chapter 3 (2) - Engagement 1 Engagement 2 Cash Revenues...

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