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Jakob Corporation has the following information pertaining to the purchase of a new piece of equipment: 7. Cash revenues less cash expenses $55,000 per year
Jakob Corporation has the following information pertaining to the purchase of a new piece of equipment: 7. Cash revenues less cash expenses $55,000 per year $190,000 $25,000 $30,000 Cost of equipment Salvage value at the end of the 10th year Increase in working capital requirements 40 percent 10 years Tax rate Life Cost of capital is 15 percent Required (use excel) b. Calculate the following assuming that depreciation expense is $30,000, $27,000, $24,000, $21,000, $18,000, $15,000, $12,000, $9,000, $6,000 and $3,000 for years 1 through 10, respectively: i. Calculate the after-tax cash flows for each of the ten years
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