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Telstar Communications is going to purchase an asset for $440,000 that will produce $210,000 per year for the next four years in earnings before depreciation
Telstar Communications is going to purchase an asset for $440,000 that will produce $210,000 per year for the next four years in earnings before depreciation and taxes. The asset will be depreciated using the three-year MACRS depreciation schedule in Table 1212. (This represents four years of depreciation based on the half-year convention.) The firm is in a 35 percent tax bracket. |
Fill in the schedule below for the next four years. (Input all amounts as positive values. Round your answers to the nearest whole dollar amount.) |
Year 1 | Year 2 | Year 3 | Year 4 | ||||||||
Earnings before depreciation and taxes | $ | $ | $ | $ | |||||||
Depreciation | |||||||||||
Earnings before taxes | $ | $ | $ | $ | |||||||
Taxes | |||||||||||
Earnings after taxes | $ | $ | $ | $ | |||||||
Depreciation | |||||||||||
Cash flow | $ | $ | $ | $ | |||||||
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