Some Practice Problems:

You purchase a $7-$year fixed assets for $$1,000,000$ :

What is your depreciation expense in years $1-3?$

What is the book value after year $3?$ What is the ATSV if you sell it for $$800,000$ at that time $($use a $30\%$ tax rate$)?$

To start your business, you figure you need $$20k$ in cash and $$30k$ in inventory in year $0($to be held level until liquidated at the end$).$ You expect to have $$10k$ in receivables and $$15k$ in payables each year you operate, but shut down after year $3.$ Find your cash flows from NWC for each year.

Find OCFs from $3$D Snowboards

$\backslash$table$[[\backslash$table$[[$TABLE $8\mathrm{.}3],[$Depreciation under$],[$Modified Accelerated$],[$Cost Recovery System$],[($MACRS$)]],$RECOVERY PERIOD CLASS$],[$YEAR$,3$ YEARS,$5$ YEARS,$7$ YEARS,$10$ YEARS,$15$ YEARS,$20$ YEARS$],[1,3333,\mathrm{.}2000,\mathrm{.}1429,\mathrm{.}1000,\mathrm{.}0500,\mathrm{.}03750],[,2,\mathrm{.}4445,\mathrm{.}3200,\mathrm{.}2449,\mathrm{.}1800,\mathrm{.}0950,\mathrm{.}07219],[,3,\mathrm{.}1481,\mathrm{.}1920,\mathrm{.}1749,\mathrm{.}1440,\mathrm{.}0855,\mathrm{.}06677],[,4,\mathrm{.}0741,\mathrm{.}1152,\mathrm{.}1249,\mathrm{.}1152,\mathrm{.}0770,\mathrm{.}06177],[,5,,\mathrm{.}1152,\mathrm{.}0893,\mathrm{.}0922,\mathrm{.}0693,\mathrm{.}05713],[,6,,\mathrm{.}0576,\mathrm{.}0892,\mathrm{.}0737,\mathrm{.}0623,\mathrm{.}05285],[,\backslash$table$[[7],[0]],,,\backslash$table$[[\mathrm{.}0893],[$nase$]],\backslash$table$[[\mathrm{.}0655],[$neere$]],\backslash$table$[[\mathrm{.}0590],[$OEn$]],\backslash$table$[[\mathrm{.}04888],[$nacan$]]]]$