I have build a capital budgeting analysis table the result is attached as

I have build a capital budgeting analysis table the

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I have build a capital budgeting analysis table, the result is attached as Table.1. Look at the table; it aims to calculate the taxed net cash flow and two kind of investment criteria ratios. Besides those titles, on line 3, there is an initial outlay for the facility in year zero, and year zero means the beginning of the first year. On line 4, here are cost savings for future three years, which are our benefits of this project. They are calculate by the function below: Cost Saving = weeks per year×diliveryamount ×cost saving per dilivery For example, it is (52*600*7) dollars in the first year. On line 5, here are the additional annual costs I mentioned in the second paragraph. On line 7, here are average depreciations for three years calculated by the straight-line depreciation. On line 8, the change in taxable income is prepared for the next tax liability; its function is listed below: Change Taxable Income = Cost Saving Added Annual Cost – Depreciation Whatever these taxable incomes are positive or negative, they all contribute to the tax liability, so we cannot ignore the negative numbers. On line 9, the change in tax liability is the result of change in taxable income times tax rate.
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  • Spring '14
  • Apland,Jeffrey

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