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how do i calculate truck net cash flow for wee 4 frank smith plumbing Frank Smith Plumbing Data Needed for analysis: Year-1 Year-2 Project Cost

how do i calculate truck net cash flow for wee 4 frank smith plumbing

image text in transcribed Frank Smith Plumbing Data Needed for analysis: Year-1 Year-2 Project Cost of Capital (borrowing) 12.00% Cost of Truck $200,000 Cost of additional equiment attached to truck $15,000 Tax rate 35% Annual Before Tax & Depreciation Truck Projected Earnings $70,000 $70,000 Depreciation Percentage Rate (MACRS)* 20.0% 32.0% * The proposed truck has an estimated economic life of seven years but will be treated as a five-year MACRS property Calculate the following -- light yellow highlighted cells need to be Year-0 Annual Before Tax & Depreciation Truck Projected Earnings Depreciation Expense Annual Before Tax Truck Projected Earnings Tax Annual Projected Truck Earnings Depreciation to add back Projected Truck Net Cash Flow -$215,000.00 Year-1 $70,000.00 43,000.00 27,000.00 9,450.00 $17,550.00 Year-2 $70,000.00 68,800.00 1,200.00 420.00 $780.00 43,000.00 68,800.00 $60,550.00 $69,580.00 54063.00 55469.00 Decision Criteria: Pay Back Period Discounted Pay Back Period (DPB)** Net Present Value Internal Rate of Return Profitability Index Years Years 3.59 5.52 $28,681.97 16.51% 1.13 Discounted Cash Flow Needed for DPB Calc. Recommendations: th Plumbing d for analysis: Year-3 Year-4 Year-5 Year-6 Year-7 Year-8 $65,000 $60,000 $55,000 $50,000 $40,000 $30,000 5.8% 0.0% 0.0% 19.2% 11.5% 11.5% s a five-year MACRS property for depreciation purposes. highlighted cells need to be completed n Criteria: mendations: Year-3 $65,000.00 41,280.00 23,720.00 8,302.00 $15,418.00 Year-4 $60,000.00 24,725.00 35,275.00 12,346.25 $22,928.75 Year-5 $55,000.00 24,725.00 30,275.00 10,596.25 $19,678.75 Year-6 $50,000.00 12,470.00 37,530.00 13,135.50 $24,394.50 Year-7 $40,000.00 0.00 40,000.00 14,000.00 $26,000.00 Year-8 $30,000.00 0.00 30,000.00 10,500.00 $19,500.00 41,280.00 24,725.00 24,725.00 12,470.00 0.00 0.00 $56,698.00 $47,653.75 $44,403.75 $36,864.50 $26,000.00 $19,500.00 40357.00 30285.00 25196.00 18677.00 11,761.00 7876.00

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