Question
Effective income tax rate 50% After-tax MARR 12% EOY BTCF Depreciation Taxable Income Income Taxes ATCF 0 $ (95,000.00) - - - $ (95,000.00) 1
| Effective income tax rate | 50% | ||||
| After-tax MARR | 12% | ||||
| EOY | BTCF | Depreciation | Taxable Income | Income Taxes | ATCF |
| 0 | $ (95,000.00) | - | - | - | $ (95,000.00) |
| 1 | $ 37,000.00 | $ 23,750.00 | $ 13,250.00 | -$6,625.00 | $ 30,375.00 |
| 2 | $ 37,000.00 | $ 23,750.00 | $ 13,250.00 | -$6,625.00 | $ 30,375.00 |
| 3 | $ 37,000.00 | $ 23,750.00 | $ 13,250.00 | -$6,625.00 | $ 30,375.00 |
| 4 | $ 37,000.00 | $ 23,750.00 | $ 13,250.00 | -$6,625.00 | $ 30,375.00 |
For the given table, find the EVA in year 3 (please round the result to integer, e.g., if the result is $ 5,732.07, fill in 5732);
Should this project be invested based on the annual/present/future equivalent EVA (fill in "1" if the answer is "yes", otherwise fill in "0")?
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Using Microcomputers In Managerial Accounting
Authors: George Hildebrand
1st Edition
0938188275, 978-0938188278
