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Old MathJax webview what is the annual depreciation expense? round to nearest cent. these answers are wrong . If someone provides right answer will give

Old MathJax webview

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image text in transcribed

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what is the annual depreciation expense? round to nearest cent.

these answers are wrong . If someone provides right answer will give thumbs up.

No. I need all 4parts. it's one question with 4parts.

Given the following information, please calculate after tax cash flow for year 1. Assuming a sales price of $1,100,000, please calculate the after tax cash flow from the sale (don't forget the depreciation recapture.) Finally, calculate the after tax IRR for the investment. Canvas will ask you other questions in addition to these. So, calculate all of this first, then proceed to the actual quiz questions. They are given one at a time, each as a separate quiz. Do not move on to the next question until you have the current one correct. Since some of the answers build on the previous question, there's no point in moving forward until you have the current question correct. Notice that Quizzes 1-4 are one point, but Quiz 5 is 6 points with just one answer. There is no time limit and there is no limit on the number of attempts. Purchase Price: $900,000 Loan: $750,000, 5%, 25 years (annual payments) Year 1 NOI: $100,000 Year 2 ATCF: $33,000 Year 3 ATCF: $34,000 Use an 85/15 ratio for depreciation. 39 year, straight line. 35% tax rate on income, 15% on long term capital gains, 25% depreciation recapture. Focus O @ 99% Pesc Ingent 5 6 7 8 9 O Given the following information, please calculate after tax cash flow for year 1. Assuming a sales price of $1,100,000, please calculate the after tax cash flow from the sale (don't forget the depreciation recapture.) Finally, calculate the after tax IRR for the investment. Purchase Price: $900,000 Loan: $750,000, 5%, 25 years (annual payments) Year 1 NOI: $100,000 Year 2 ATCF: $33,000 Year 3 ATCF: $34,000 Use an 85/15 ratio for depreciation. 39 year, straight line. 35% tax rate on income, 15% on long term capital gains, 25% depreciation recapture. 1. What is the annual loan payment? 2. What is the annual depreciation expense? 3. What is the after tax cash flow (ATCF) for year 1? 4. What is the after tax cash flow from the sale at the end of year 3? 5. What is the IRR of the investment? 1 Comment Expert Answer Anonymous answered this 1) Annual payment = ( $750,000/PVAF 5%, 25yr) = $53214.34 2)Annual Depreciation expenses = ($900,000 x 0.85 / 39) = $ 19,615 3). NOI - $ 100,000 Less Depn - $19615 Less Interest - $53214.34 EBT - $ 27,170.66 Less Tax @35 - $ 9510 EAT - $ 17,660 Add. Depn - $ 19615 ATCF - $ 37275 4)Adjusted Cost of machine on year 3 - ($900,000 - {19615x3}) = $841,155 Depreciation recapture = 25% Thus sales value is ($841,155 x 1.25 ) = $1051443.75 Less LTCG @15% = 31543 ATCF from Sale on Year 3 = $1,019,900

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