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Compute: increasing in net fixed assets, decrease in accrued taxes, retained ratio, cost of new asset, net income before tax, net cash flow for the

Compute: increasing in net fixed assets, decrease in accrued taxes, retained ratio, cost of new asset, net income before tax, net cash flow for the period, initial cash outflow, incremental cash flow for the terminal year before project windup considerations and, total amount of uses according to the information given below: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS.

Annual cash dividend payments : $3400

Decreasing in net working capital : $1400

Depreciation amount (charge) : $13335

Depreciation rate (MACRS) : 44.45%

Final salvage value of new asset (after tax) : $3800

Gross additions to fixed assets : $29550

Net book value of the old asset : $8000

Net change in income after taxes for the period : $7165

Net income after tax (annual earnings) : $17000

Selling price of the old asset : $6000

Tax prepayment : $640 Tax rate : 20%

Terminal-year incremental net cash flow : $13000

Total amount of sources : $39.000

Total tax payment : $5200

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