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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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