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Capital gains tax rate = 0.15 Income tax rate =0.30 Depreciation , straight line A firm is considering purchasing a new asset. Use the information
Capital gains tax rate = 0.15 Income tax rate =0.30 Depreciation , straight line
A firm is considering purchasing a new asset. Use the information in the chart below to find the net cash outlay for this asset.
Inputs | |
Cost of New Asset | 90,000 |
Installation Costs | 0 |
Old Asset | |
Book Value | 0 |
Proceeds on Sale | 45,000 |
Initial Purchase Price | 100,000 |
Decrease in Working Capital | 7,000 |
PROBLEM 1 | ||
Inputs | ||
Cost of New Asset | ||
Installation Costs | ||
Old Asset | ||
Book Value | ||
Proceeds on Sale | ||
Initial Purchase Price | ||
Decrease in Working Capital | ||
Outputs | Distribution | Tax Effects |
Book Value | ||
Capital Gain | ||
Capital Loss | ||
Recaptured Depreciation | ||
Proceeds on Sale | ||
Cost of New Asset | ||
Installation Costs | ||
Proceeds on Sale,Old Asset | ||
Taxes on Proceeds on Sale | ||
Decrease in Working Capital | ||
Net Cash Outlay |
Please use Excel and show formulas
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