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Income tax rate = 30% Capital gains tax rate = 15% Using the chart below, calculate the net cash outlay for this investment. Cost of
Income tax rate = 30%
Capital gains tax rate = 15%
Using the chart below, calculate the net cash outlay for this investment.
Cost of New Asset | $450,000 |
Installation Costs | 13,000 |
Old Asset | |
Book Value | 125,000 |
Proceeds on Sale | 300,000 |
Initial Purchase Price | 200,000 |
Increase in Working Capital | 22,000 |
Inputs | ||
Cost of New Asset | ||
Installation Costs | ||
Old Asset | ||
Book Value | ||
Proceeds on Sale | ||
Initial Purchase Price | ||
Increase in Working Capital | ||
Outputs | ||
Cash Distribution Table | Distribution | Tax Effects |
Book Value | ||
Capital Gain | ||
Capital Loss | ||
Recaptured Depreciation | ||
Proceeds on Sale | ||
Cost of New Asset | ||
Installation Costs | ||
Proceeds on Sale,Old Asset | ||
Taxes on Proceeds on Sale | ||
Increase in Working Capital | ||
Net Cash Outlay |
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