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Financial statements for ypur firm show that at the end of 2020, your firm had the following actual dollar cash flows: Revenues $100,000 Maintenance costs
Financial statements for ypur firm show that at the end of 2020, your firm had the following actual dollar cash flows: Revenues $100,000 Maintenance costs $10,000 Employee Salaries $25,000 In 2020 you also sold an asset that had a cost basis (i.e. an initial cost of $30,000. The book value at the time it was sold was $10,000 whereas you sold it for $40,000 actual dollars. Depreciation of other equipment amounted to $15,000 in 2020. Assume that any recaptured depreciation is simply faxed at the regular corporate income tax rate as a one-time payment in the same year as it is realized (.e. books closed calculation). The corporate tax rate is 35% and any Capital Gain is taxed at half the corporate tax rate. Calculate the real dollar after tax cash flow for the firm in 2020. if the annual inflation rate is 5%
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