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Given: A 5-Year MACRS class Capital Cost at time zero = $7,500,000 Income: Year 1 $650,000 Year 2 $950,000 Year 3 $2,750,000 Year 4 $1,900,000
Given: A 5-Year MACRS class Capital Cost at time zero = $7,500,000 Income: Year 1 $650,000 Year 2 $950,000 Year 3 $2,750,000 Year 4 $1,900,000 Year 5 $800,000 Year 6 $450,000 Combined Tax rate: 27% Wanted: (a) Complete the following table 15 points): Year BTCF MACRS Depreciation Income Taxes Taxable Income After-Tax Cash Flow un WNO 5 6 Sum (6) What is the before-Tax rate of return (5 points)? (c) What is the after-tax rate of return (5 points)
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