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I need the answer as soon as possible 1. 2 3 4 5 6 7 8 9 10 11 12 An organisation is considering the

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1. 2 3 4 5 6 7 8 9 10 11 12 An organisation is considering the purchase of an item of equipment, which would earn profits before tax of $25,000 a year. Depreciation charges would be $20,000 a year for six years. Capital allowances would be $30,000 a year for the first four years. Corporation tax is at 30%. Assume that tax payments occur half in the same year as the profits giving rise to them, half in the following year, and there is no balancing charge or allowance when the machine is scrapped at the end of the sixth year. 13 Required 14 15 Fill in the blanks below. 16 The net cash inflows of the project after tax in the first six years are: 17 18 Year 1 Year 4 19 20 Year 2 Year 5 21 Year 3 Year 6 22 23 24 25

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