8 calculation of operating cash inflows for powell

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Unformatted text preview: ting Cash Inflows for Powell Corporation’s Proposed and Present Machines Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $2,520,000 $2,520,000 $2,520,000 $2,520,000 $2,520,000 2,300,000 2,300,000 2,300,000 2,300,000 2,300,000 $ 220,000 $ 220,000 $ 220,000 $ 220,000 $ 220,000 With proposed machine Revenuea Expenses (excl. depr.)b Profits before depr. and taxes Depreciation 80,000 c Net profits before taxes Taxes (rate $ 140,000 40%) Net profits after taxes $ 0 48,000 48,000 20,000 $ 144,000 $ 172,000 $ 172,000 $20,000 36,800 57,600 68,800 68,800 8,000 86,400 $ 103,200 $ 103,200 $12,000 128,000 76,000 48,000 48,000 20,000 $ 164,000 $ 183,200 $ 162,400 $ 151,200 $ 151,200 $ 8,000 $2,200,000 Operating cash inflows $ 76,000 92,000 80,000 Depreciationc 84,000 0 0 128,000 $ 56,000 $ $ 55,200 $ $2,300,000 $2,400,000 $2,400,000 $2,250,000 $ With present machine Revenuea Expenses (excl. depr.)b Profits before depr. and taxes Depreciation Net profits before taxes 40%) Net profits after taxes Depreciationc Operat...
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This document was uploaded on 01/19/2014.

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