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Chapter 6 - Payment Debt Repayment Interest Payment Cost...

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Cash Flows Year NPV 0 4,000 (1,000) (5,000) 350 - (4,650) 1 3,000 (1,000) 350 0.935 327 2 2,000 (1,000) 350 0.873 306 3 1,000 (1,000) 350 0.816 286 4 - (1,000) 350 0.763 267 TOTAL (3,465) Year-End Adjusted Basis Annual Deduction Initial Payment Tax Savings from Deductions Discount Factor
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Tax Savings From Year NPV 0 (1,500) 350 (1,150) - (1,150) 1 (315) 350 110 145 0.935 136 2 (315) 350 110 145 0.873 127 3 (315) 350 110 145 0.816 118 4 (3,500) (315) 350 110 (3,355) 0.763 (2,560) TOTAL (3,329) Initial
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Unformatted text preview: Payment / Debt Repayment Interest Payment Cost Recovery Deduction Interest Deduction Net Cash Flow Discount Factor USD useful life Plot of Land 15,000.00 Office Building 78,000.00 10 7,800.00 Cranes 12,000.00 4 3,000.00 Petroleum Storage Depot 120,000.00 6.67 18,000.00 Computers 5,000.00 2.50 2,000.00 Furniture 14,000.00 6.67 2,098.95 Gas Pipeline 90,000.00 6.67 13,493.25 TOTAL 334,000.00 Annual Depreciation...
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