Chapter 4 - Year 1 Year 2 Cash Revenues 120,000.00...

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Unformatted text preview: Year 1 Year 2 Cash Revenues 120,000.00 180,000.00 Cash Expenses-40,000.00 -80,000.00 Taxable Income 80,000.00 100,000.00 Tax Cost (35%)-28,000.00 -35,000.00 After-Tax Cash Flow 52,000.00 65,000.00 Present value of year 1 cash flow 52,000.00 Present value of year 2 cash flow 58,045.00 (discount factor 0,893) NPV 110,045.00 Year 1 Year 2 Cash Revenues 120,000.00 180,000.00 Cash Expenses-40,000.00 -80,000.00 Taxable Income 80,000.00 100,000.00 Tax Cost (35%)-28,000.00 -35,000.00 After-Tax Cash Flow 52,000.00 65,000.00 Present value of year 1 cash flow 52,000.00 Present value of year 2 cash flow 58,045.00 (discount factor 0,893) NPV 110,045.00 Year 1 Year 2 Cash Revenues 120.00 180.00 Cash Expenses-40.00 -80.00 Taxable Income 80.00 180.00 Tax Cost (35%)-63.00 After-Tax Cash Flow 80.00 37.00 Present value of year 1 cash flow 80.00 Present value of year 2 cash flow 33.04 (discount factor 0,893) NPV 113.04 Year 1 Year 2 Cash Revenues 120,000.00 180,000.00 Cash Expenses-40,000.00 -80,000.00 Taxable Income...
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This note was uploaded on 12/14/2011 for the course ECONOM 110 taught by Professor Tuturukov during the Spring '11 term at London College of Accountancy.

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Chapter 4 - Year 1 Year 2 Cash Revenues 120,000.00...

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