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Firm Zeta estimates that a newly purchased asset will have a depreciable basis of $400,000 and will be depreciated to zero with straight line over
Firm Zeta estimates that a newly purchased asset will have a depreciable basis of $400,000 and will be depreciated to zero with straight line over its five-year life. Sales will increase by $80,000 and costs will increase by $30,000. The tax rate 20%. The asset will be sold for $50,000 at the end the five years. How much is the yearly after tax annual operating cash flow? Please try not to use excel. I'm trying to learn how to do this! LOL!
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