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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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