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Alt 3: Invest $20,000, plus borrow an additional $20,000 at 8%, get income of $12,000 for 5 yrs, SL depreciation with 25,000 salvage value Try
Alt 3: Invest $20,000, plus borrow an additional $20,000 at 8%, get income of $12,000 for 5 yrs, SL depreciation with 25,000 salvage value Try to solve at home - show after-tax cash flows Hint: interest portion of loan payment as well as depreciation is deductable from taxable income 4. Find the real After-Tax ROR for the following cash flow. Given 28% tax & i;=8.5% 100K 11K 11K 11K 11K 0 1 2 3 20 100K
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