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Tabletop Ranches Tabletop Ranches Inc. is considering the purchase of a new helicopter for $300,000. The firm's old helicopter has a book value of $60,000

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Tabletop Ranches Tabletop Ranches Inc. is considering the purchase of a new helicopter for $300,000. The firm's old helicopter has a book value of $60,000 but can be sold today for $30,000. The new helicopter will be subject to a CCA rate of 25 percent. It is expected to save $70,000 per year for 8 years through reduced fiel and maintenance expenses. The company will need to invest $12,000 in spare parts inventory (working capital) when they purchase the helicopter. At the end of the 8 years the company believes it can sell the helicopter for $40,000. Tabletop Ranches has a 12 percent cost of capital and a 30 percent tax rate. Required: a. Complete the following table by entering the present value, after-tax, of each of the following cash flows. - Round all cash flow numbers to zero decimal places. Enter cash outflows as negative numbers. Enter Net' numbers for each cash flow. (eg working capital, net of recovery) -$300,000 Description Initial Investment Trade In Expense Savings Salvage CCA Tax Shield Working Capital (Net) Net Present Value Tabletop Ranches Tabletop Ranches Inc. is considering the purchase of a new helicopter for $300,000. The firm's old helicopter has a book value of $60,000 but can be sold today for $30,000. The new helicopter will be subject to a CCA rate of 25 percent. It is expected to save $70,000 per year for 8 years through reduced fiel and maintenance expenses. The company will need to invest $12,000 in spare parts inventory (working capital) when they purchase the helicopter. At the end of the 8 years the company believes it can sell the helicopter for $40,000. Tabletop Ranches has a 12 percent cost of capital and a 30 percent tax rate. Required: a. Complete the following table by entering the present value, after-tax, of each of the following cash flows. - Round all cash flow numbers to zero decimal places. Enter cash outflows as negative numbers. Enter Net' numbers for each cash flow. (eg working capital, net of recovery) -$300,000 Description Initial Investment Trade In Expense Savings Salvage CCA Tax Shield Working Capital (Net) Net Present Value

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