answer questions 21.30, 21.31, 21.32, 21.33

21.30 021.10 21.31 \"321.10 21.32 \"321.10 21.11 21.35 L0 21 .9 21 .'I 0 21 .11 After-tax cash flows; profit or less on disposal: manufacturer In year 1, Expert Chemicals purchased a forklift truck for $500 000, and at the end of year 3 sold it for $55 550. At the time of sale. $253 070 in accumulated depreciation had been recorded. Note the accumulated depreciation is the same for accounting and tax purposes. Required: 1 What was the lorklift's carrying amount at the time of sale? 2 Calculate the profit or loss on the sale. 3 Determine the after-tax cash flow from the sale of the forklift. The firm's tax rate is 40 per cent. After-tea: cash flows, depreciation: manufacturer All Steel Fabrication Ltd purchased industrial tools costing $120 000. These tools are expected ' for three years. The company tax rate Is 30 per cent. 8/1 5 :: Required: ' ' 1 Prepare a schedule setting out the depreciation deductions. and their implications For cash . ._ each of the three years using the straight-line method. 2 Repeat requirementl using diminishing value depreciation of 40 per cent. After-tax cash flows. payback period: even'ceeh flows: wildlife refuge The management of Wombat Village. a private refuge for endangered wildlife, is considering an investment in an electrified fencing system to keep out feral foxes and cats. The fences would cost $186 300 and have a useful life of seven years. The refuge's finance manager has estimated that the nev fencing system will save the business $40 500 per year after taxes in security costs. The fencing systenr will have no salvage value. The tax rate is 36 per cent. Required: 1 Calculate the payback period for the proposed capital expenditure. _ 2 Calculate the net present value of the proposed investment. assuming a required rate of return afts tax of: (a) 3 per cent. (b) 10 per cent. (c) 12 per cent. After-tax cash flows. protability index; service firm The owner of Black Hills Cafe is considering the purchase of a new semi-automatic coffee-making machine. The machine will cost '95 000 and last 10 years. The machine is expected to have no salvage value at the end of its useful life. The owner estimates that the new machine will generate $12 000 in after-tax savings each year during its life (including the tax effect of depreciation). The depreciation charge is the same for accounting and tax purposes. Required: Calculate the profitability index for the proposed vending machine. assuming the after~tax required rat of return of: (a) a per cent. (b) 3 per cent. (c) T0 per cent