5 85000 85000 29750 29750 29400 29400 incremental

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 00 85,000 (29,750) (29,750) (29,400) (29,400) Incremental Earnings before Taxes Incremental - Tax on Incremental EBT Tax Incremental Earnings after Taxes Incremental + Depreciation Reversal Depreciation Annual Cash Flow Annual For Years 1 - 5: 85,000 85,000 (29,750) (29,750) (29,400) 25,850 25,850 - Tax on Incremental EBT Tax Incremental Earnings after Taxes Incremental + Depreciation Reversal Depreciation Annual Cash Flow Annual For Years 1 - 5: 85,000 85,000 (29,750) (29,750) (29,400) 25,850 25,850 (8,789) (8,789) Incremental Earnings after Taxes Incremental + Depreciation Reversal Depreciation Annual Cash Flow Annual For Years 1 - 5: 85,000 85,000 (29,750) (29,750) (29,400) 25,850 25,850 (8,789) (8,789) 17,061 17,061 + Depreciation Reversal Depreciation Annual Cash Flow Annual For Years 1 - 5: 85,000 85,000 (29,750) (29,750) (29,400) 25,850 25,850 (8,789) (8,789) 17,061 17,061 29,400 29,400 Annual Cash Flow Annual For Years 1 - 5: For 85,000 85,000 (29,750) (29,750) (29,400) 25,850 25,850 (8,789) (8,789) 17,061 17,061 29,400 29,400 46,461 = 46,461 Revenue Costs Depreciation EBT Taxes EAT Depreciation reversal Annual Cash Flow Step 1: Evaluate Cash Flows Step c) Terminal Cash Flow: What is the cash c) Terminal flow at the end of the project’s life? flow Salvage...
View Full Document

Ask a homework question - tutors are online