Please work out all 3 parts and use tax bracket to answer.

TABLE 7-5 Corporate Federal Income Tax Rates (2006) If Taxable Income Is: The Tax Is: Over But Not Over of the Amount Over $50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 $50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 15% $7,500 + 25% 13,750 + 34% 22,250 + 39% 11 3,900 + 34% 3,400,000 + 35% 5,150,000 + 38% 35% $50,000 75,000 100,000 335,000 10,000,000 15,000,000 1. Find after-tax cash flows for a company with adjusted cost basis of $50,000,000. Company earns $20,000,000 by selling their own manufactured rubber products. They need to spend $8,000,000 each year to pay the workers and cover operation costs. The study period of 8 years is reasonable with end of study-period of $10,000,000 market value. Management team imposed 5-year study period. Find after-tax cash flows with newly imposed study period. Write down all your assumptions. Government suggested management team of this company to consider longer study periods. Management team ordered chief financial officer to find after-tax cash flows for study period of 10 years. Write down all your assumptions. TABLE 7-5 Corporate Federal Income Tax Rates (2006) If Taxable Income Is: The Tax Is: Over But Not Over of the Amount Over $50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 $50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 15% $7,500 + 25% 13,750 + 34% 22,250 + 39% 11 3,900 + 34% 3,400,000 + 35% 5,150,000 + 38% 35% $50,000 75,000 100,000 335,000 10,000,000 15,000,000 1. Find after-tax cash flows for a company with adjusted cost basis of $50,000,000. Company earns $20,000,000 by selling their own manufactured rubber products. They need to spend $8,000,000 each year to pay the workers and cover operation costs. The study period of 8 years is reasonable with end of study-period of $10,000,000 market value. Management team imposed 5-year study period. Find after-tax cash flows with newly imposed study period. Write down all your assumptions. Government suggested management team of this company to consider longer study periods. Management team ordered chief financial officer to find after-tax cash flows for study period of 10 years. Write down all your assumptions