Question
An asset with 5-year MACRS life will be purchased for $15,000. It will produce net annaul benefits of $3,500 per year for 6 years, after
An asset with 5-year MACRS life will be purchased for $15,000. It will produce net annaul benefits of $3,500 per year for 6 years, after which time it will have a net salvage value of zero and will be retired. The company's marginal tax rate is 36%. Complete the following after-tax cash flow table.
Enter your answer with 2 decimal places, as follow: 1000.00
| EOY | BTCF | MACRS Depreciation | Taxable Income | Taxes | ATCF |
| 0 | -15000.00 | -15000.00 | |||
| 1 | 3500.00 | 500.00 | 180.00 | 3320.00 | |
| 2 | 3500.00 | -1300.00 | -468.00 | 3968.00 | |
| 3 | 3500.00 | ||||
| 4 | 3500.00 | ||||
| 5 | 3500.00 | 1728.00 | |||
| 6 | 3500.00 | 864.00 |
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The Solitary Auditor
Authors: Michael Knapp
1st Edition
161163878X, 978-1611638783
