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1. Assume a corporation has earnings before depreciation and taxes of $85,000, depreciation of $40,000, and that it has a 40% combined tax bracket. What
1. Assume a corporation has earnings before depreciation and taxes of $85,000, depreciation of $40,000, and that it has a 40% combined tax bracket. What are the after- tax cash flows for the company? 2. A project requires an investment of S1,100 and has a net present value of $400. If the internal rate of retum is 8%, what is the profitability index for the project? (Round your answer to 2 decimal places.) 3. The Wet Corp. has an investment project that will reduce expenses by $25,000 per year for 3 years. The project's cost is $15,000. If the asset is part of the 3-year MACRS category (33.33% first year depreciation) and the company's combined tax rate is 34%, what is the cash flow from the project in year 1? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) 4. To save for a new car, Samuel Smith will invest $23,000 at the end of each year for the next 5 years. The interest rate is 8% What is the future value? (Ctrl)
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