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Let's say you are going to be an Uber driver and want to estimate your annual operating after tax cash flows. Assume the following annual
Let's say you are going to be an Uber driver and want to estimate your annual operating after tax cash flows. Assume the following annual estimates:
-trip revenue of $20,000
-depreciation expense of $1,000
-gas and maintenance of $3,000
-insurance of $900
-tax rate of 25%
- 5 year project
- 10% discount rate
- for sake of calculation ease, all cash flows occur on the last day of the year.
What is the present value of your OCF? Use the $ symbol and round to the nearest dollar
a) $56,861.8
b) $57,240.88
c)$32,000
d) 46,721.45
e) 61,031.67
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