Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

30. Project G has cash inflows of $800 each year and cash outflows of $240 each year. Assuming a 30% tax rate, which of the

30. Project G has cash inflows of $800 each year and cash outflows of $240 each year. Assuming a 30% tax rate, which of the following comes closest to Project Gs cash flow in year 1 if we assume straight line depreciation of $50?

a. $407

b. $410

c. $413

d. $416

e. $419

29. Your firm is considering the purchase of a machine that costs $10,000. The machine has a useful life of 5 years over which it will be depreciated using straight-line depreciation assuming zero salvage value. During the life of the machine, it is expected to generate revenues of $8,000 and cost $3,000 each year. What is the after tax cash flow in year 3, assuming a tax rate of 30%?

a. $2,100

b. $3,100

c. $4,100

d. $5,100

e. $6,100

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Marketplace Lending Financial Analysis And The Future Of Credit Integration Profitability And Risk Management

Authors: Ioannis Akkizidis, Manuel Stagars

1st Edition

1119099161, 978-1119099161

More Books

Students also viewed these Finance questions

Question

8. Explain the relationship between communication and context.

Answered: 1 week ago

Question

d. How were you expected to contribute to family life?

Answered: 1 week ago