TABLE 8-1 ATCFS for Example 8-2 (4) (1) End-of-Year, (2) ATCF (3) (P/F, f%, k – b) = [1/(1.052)k-0] (R$), b = 0 ATCF k (A$) -172,400 1.0 -172,400 - 19,963 46,626 1 -21,000 51,600 0.9506 2 0.9036 3 53,000 0.8589 45,522 47,520 45,169 42,934 4 58,200 58,200 0.8165 5 0.7761 6. 58,200 0.7377 7 58,200 0.7013 40,816 38,796 8 58,200 0.6666
TABLE 8-1 ATCFS for Example 8-2 (4) (1) End-of-Year, (2) ATCF (3) (P/F, f%, k – b) = [1/(1.052)k-0] (R$), b = 0 ATCF k (A$) -172,400 1.0 -172,400 - 19,963 46,626 1 -21,000 51,600 0.9506 2 0.9036 3 53,000 0.8589 45,522 47,520 45,169 42,934 4 58,200 58,200 0.8165 5 0.7761 6. 58,200 0.7377 7 58,200 0.7013 40,816 38,796 8 58,200 0.6666
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter10: Liabilities: Current, Installment Notes, And Contingencies
Section: Chapter Questions
Problem 10.1EX: Current liabilities Bon Nebo Co. sold 25,000 annual subscriptions of Bjorn for 85 during December...
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An engineering project team is analyzing the potential expansion of an existing production facility. Different design alternatives are being considered. The estimated after-tax cash flow (ATCF) in actual dollars for one alternative is shown in column 2 of the shown Table. If the general price inflation rate (f ) is estimated to be 5.2% per year during the eight-year analysis period, what is the real-dollar ATCF that is equivalent to the actual-dollar ATCF? The base time period is year zero (b = 0).
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