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Please tell me which of the answers is correct and show your calculations. Acquisition payoff in to: 100 Eamings surplus before tax: 20 in t1,30
Please tell me which of the answers is correct and show your calculations.
Acquisition payoff in to: 100 Eamings surplus before tax: 20 in t1,30 in t2,40 in t3,45 in t4 Fiscal (cigital) depreciation : 40 in t1,30 in t2,20 in t3,10 in t4 Total tax burden on distributed company profits 50% Project losses can be offset against profits from other projects Alternative return of owners after taxes: 10% The project would be fully equity funded if implemented. Task: Determine the net present value after taxes of the investment and decide on its profitability! Which of the following statements are correct? Choose one or more answers: a. The net present value after tax is around 432,175.89. b. The after-tax cash flow is 3,000,000 in each of the first three years of use. c. The tax payment in the 4th year is around 1,750,000. 1.e. The capital value after taxes is around =661,157,02 Acquisition payoff in to: 100 Eamings surplus before tax: 20 in t1,30 in t2,40 in t3,45 in t4 Fiscal (cigital) depreciation : 40 in t1,30 in t2,20 in t3,10 in t4 Total tax burden on distributed company profits 50% Project losses can be offset against profits from other projects Alternative return of owners after taxes: 10% The project would be fully equity funded if implemented. Task: Determine the net present value after taxes of the investment and decide on its profitability! Which of the following statements are correct? Choose one or more answers: a. The net present value after tax is around 432,175.89. b. The after-tax cash flow is 3,000,000 in each of the first three years of use. c. The tax payment in the 4th year is around 1,750,000. 1.e. The capital value after taxes is around =661,157,02Step by Step Solution
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