topic taxation

question : why is After Tax Cash Flow = TI-E-T while NOPAT=ATCF

=(GI-OE)(1-taxrate)+taxrate(Depreciation)

EXAMPLE 1 Syarikat Gading Emas Sdn Bhd bought a machine with initial cost of RM 150000 for wwful life of years. The salvage are 10% of the initial cost. The income are RM 25000 yearly and the expenses RM 10000 yourly, The government charge tax rate 30% with the domeciation of Double Decilimia balance of 20%. Give and opinion on NPV of ATCF at the end of 5 years. The MARR after trees Deprecate ATE 100 TO 1 23 20 2:50 DOO $ 34 Sarape CALCULATION Depreciation initial cost accumulated depreciation) x depreciation Year 1 - 150000 x 0.2 - 30000 Ycar 2 = (150000 - 30000) x 0.2 =24000 Year 3 = (150000 - 30000 - 24000) x 0.2 = 19200 Year 4 = (150000 - 30000 - 24000 - 19200) x 0.2 = 15360 Year 3 = (150000 30000 - 24000 - 19200 - 15360) x 0:2 = 12288 Example calculation Taxable income income - expenses - depreciation) Year 1:25000 - 10000 - 30000 = -15000 Calculate until year 5 with same formula (1-E-D) Example calculation Example calculation ATCF : (taxable income-expenses -- taxation) Year 1 - 15000 - 10000 - (-4500) - 20500 Year 2 =-9000 - 10000 - (-2700)=-16300 Calculate until years with same formula ( TI-E-T) ATCE: F-15000 po 150000 73-12940 Fl-20500 F-160300 14--10252 FS-81016 EXAMPLE 1 Syarikat Gading Emas Sdn Bhd bought a machine with initial cost of RM 150000 for wwful life of years. The salvage are 10% of the initial cost. The income are RM 25000 yearly and the expenses RM 10000 yourly, The government charge tax rate 30% with the domeciation of Double Decilimia balance of 20%. Give and opinion on NPV of ATCF at the end of 5 years. The MARR after trees Deprecate ATE 100 TO 1 23 20 2:50 DOO $ 34 Sarape CALCULATION Depreciation initial cost accumulated depreciation) x depreciation Year 1 - 150000 x 0.2 - 30000 Ycar 2 = (150000 - 30000) x 0.2 =24000 Year 3 = (150000 - 30000 - 24000) x 0.2 = 19200 Year 4 = (150000 - 30000 - 24000 - 19200) x 0.2 = 15360 Year 3 = (150000 30000 - 24000 - 19200 - 15360) x 0:2 = 12288 Example calculation Taxable income income - expenses - depreciation) Year 1:25000 - 10000 - 30000 = -15000 Calculate until year 5 with same formula (1-E-D) Example calculation Example calculation ATCF : (taxable income-expenses -- taxation) Year 1 - 15000 - 10000 - (-4500) - 20500 Year 2 =-9000 - 10000 - (-2700)=-16300 Calculate until years with same formula ( TI-E-T) ATCE: F-15000 po 150000 73-12940 Fl-20500 F-160300 14--10252 FS-81016