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A food cart that costs $5000, has a salvage value of $400 and will be depreciated over 4 years using the DDB method. The cash

A food cart that costs $5000, has a salvage value of $400 and will be depreciated over 4 years using the DDB method. The cash flow before taxes (BTCF) is presented below. Using a tax rate of 25%, answer the following questions. [13 points] a) Prepare the table below showing the depreciation expenses and book values fot the DDB depreciation method. [5 points] Year Dt Dt BV 0 1 2 3 4 b) Fill in the following table [4 points] Before Taxes Year Cash Flow 0 -$5,000 1 $3,550 2 $3,600 3 $3,750 4 $3,800 DDB Depreciation Taxable Income Taxes After Taxes Cash Flow c) What is the internal rate of return of the after tax cash flows? [4 points]image text in transcribed

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