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For a 3 year project, the following estimates are provided: Purchase price $800M Resale $550M T Income/yr = $550M Expenses $300M/yr T CCA 20%,
For a 3 year project, the following estimates are provided: Purchase price $800M Resale $550M T Income/yr = $550M Expenses $300M/yr T CCA 20%, Half-yr. Rule applicable (Declining Balance) Loan $550M, to be repaid in 3 yrs (@10%) Tax Rate 40% MARR (after tax) -10% a. Draw the after tax cash flow diagram b. Find the net present worth (after-tax). Assume that interest payment is tax deductible.
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A After tax cash flow diagram as shown below Year 0 ...
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Economics
Authors: Roger A. Arnold
12th edition
978-1305758674, 1305758676, 978-1285738321
