Henredon purchases a high-precision programmable router for shaping furniture components for $190,000. It is expected to last 12years and have a salvage value of $4,600. Henredon will borrow $100,000 at 12.6% over 6 years, paying only interest each year andpaying all the principle in the sixth year. It will produce $43,000 in net revenue each year during its life. All dollar amounts areexpressed in real dollars. Depreciation follows MACRS 7-year property, taxes are 25%, the real after-tax MARR is 10%, and inflation is3.9%.a. Determine the actual after-tax cash flows for each year.ATCFO = $ATCF1 = $ATCF2 = $ATCF3 = $ATCF4 = $ATCF5 = $ATCF6 = $ATCF7 = $ATCF8 = $ATCF9 = $ATCF10 = $ATCF11= $ATCF12 = $b. Determine the PW of the after-tax cash flows.PWST = $c. Determine the AW of the after-tax cash flows.AWST = $ ATCF5 = $ATCF = $%3DATCF7 = $%3DATCF8 = $%3DATCF9 = $%3DATCF10 = $ATCF11 = $ATCF12 = $b. Determine the PW of the after-tax cash flows.PWST = $c. Determine the AW of the after-tax cash flows.AWST = $d. Determine the FW of the after-tax cash flows.FWST = $e. Determine the combined IRR of the after-tax cash flows.IRR =%3Df. Determine the combined ERR of the after-tax cash flows.ERR. =%3Dg. Determine the real IRR of the after-tax cash flows.IRR, =h. Determine the real ERR of the after-tax cash flows.ERR, =

“Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Henredon purchases a high-precision programmable router for shaping furniture components for $190,000. It is expected to last 12 years and have a salvage value of $4,600. Henredon will borrow $100,000 at 12.6% over 6 years, paying only interest each year and paying all the principle in the sixth year. It will produce $43,000 in net revenue each year during its life. All dollar amounts are expressed in real dollars. Depreciation follows MACRS 7-year property, taxes are 25%, the real after-tax MARR is 10%, and inflation i 3.9%. a. Determine the actual after-tax cash flows for each year. ATCFO = $ ATCF1 = $ ATCF2 = $ ATCF3 = $ ATCF4 = $ ATCF5 = $ ATCF = $

Henredon purchases a high-precision programmable router for shaping furniture components for $190,000. It is expected to last 12 years and have a salvage value of $4,600. Henredon will borrow $100,000 at 12.6% over 6 years, paying only interest each year and paying all the principle in the sixth year. It will produce $43,000 in net revenue each year during its life. All dollar amounts are expressed in real dollars. Depreciation follows MACRS 7-year property, taxes are 25%, the real after-tax MARR is 10%, and inflation i 3.9%. a. Determine the actual after-tax cash flows for each year. ATCFO = $ ATCF1 = $ ATCF2 = $ ATCF3 = $ ATCF4 = $ ATCF5 = $ ATCF = $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Schedule Z-lf your filing status is Head of household The tax is: If your taxable income is: of the But not amount Over- over- over- $0 $13,850 10% $0 13,850 52,850 $1,385.00 + 12% 13,850 52,850 84,200 6,065.00 + 22% 52,850 84,200 160,700 12,962.00 + 24% 84,200 160,700 204,100 31,322.00 + 32% 160,700 204,100 510,300 45,210.00 + 35% 204,100 510,300 152,380.00 + 37% 510,300 Write the equation of the 5th row in y=mx+b form
Effective income tax rate After-tax MARR EOY BTCF $ ATCF $ (95,000.00) (95,000.00) $ $ $ -$6,625.00, $ 30,375.00 37,000.00 23,750.00 13,250.00 $ $ $ $ 237,000.00 23,750.00 $ 13,250.00 -$6,625.00, 30,375.00 $ $ -$6,625.00, $ 30,375.00 13,250.00 37,000.00 23,750.00 $ $ $ $ 437,000.00 23,750.00 13,250.00 -$6,625.00 30,375.00 1 3 50% 12% Taxable Income "Income Taxes Depreciation, For the given table, find the EVA in year 3 (please round the result to integer, e.g., if the result is $5,732.07, fill in 5732); A A/ Should this project be invested based on the annual/present/future equivalent EVA (fill in "1" if the answer is "yes", otherwise fill in "0")?
The tables to the right show recent state income tax (A) Write a piecewise definition for the tax due T(x) on an income of x dollars for an individual. if 0≤x≤ 15,000 if 15,000 < x≤ 30,000 if 30,000
If you earn $130,0000, what is the marginal tax rate? Taxable income ($) $0-$50,000 Tax (%) 7% 5.84% 6% 05% 5% $50,001-$100,000 $100,001-$200,000 6% 7%
taxable income on ructions, and publications, visit www.irs.gov or call RM (800-829-3676). u e-tile your tax return? Electronicaly fled returns are less kely to have ma errors resulting in notices such as this one. t's free to file your taxes electronicaly Go to www.irs.govlefile for information and instructions • You can contact us by mail at the address at the top of the first page of this notice de sure to include your Social Securiy Cumber and the tar year and form number you are writing about • Keep this notice for your records • Activity on your 2020 account may be detaying the relese of your neftund receive a notice explaining this delay • Estimated Tax Filers Note, i# you pn sta taes c Hill Graw P Type here to search 直。 000'006$ ) $750,000. eBook The total revenues of Harvey's firm in the first year were 81°F Sunny ^ 10/17/2021 3:57 PM
A company produces circuit boards used to update old-fashioned computer equipment. The taxes cost the company $15,000 per month. Each circuit board is made from $6 worth of material per circuit board. The selling price per unit is p = $150 -0.02D per circuit board. يزن منذ د131 a. What is the profit per month? b. What is the maximum profit? c. At what volumes do breakeven occur? What is the company's range of profitable demand? DI
Which of the following cannot be deducted against gross income of non-VAT taxpayers Foreign income tax Value added tax Philippines income tax Percentage tax Which is deductible tax expense against gross income? * Documentary stamp tax Donor's tax Estate tax Foreign income tax claimed as tax credit
Required Compute the deferred tax expense and the balance of the deferred tax account for each year. Prepare all journal entries required to record Oliver’s income tax provision for all 3 years.
Consider the following data for 2019 from an after tax cash flow analysis. What is the after tax cash flow for 2019? Before-Tax-and-Loan Cash Flow = $24000 Loan Principal Payment = $3139 Loan Interest Payment = $4280 Depreciation Deduction = $11530 Taxable Income = $6798 Taxes Due = $1586 O $14995 O $9783 O $19275 O $20861
Explain why the after-tax cashflow is the cash inflow in this project.
If Taxable Income Is Between: 0-$9,225 $9,226-$37,450 $37,451 - $90,750 $90,751 - $189,300 $189,301-$411,500 $411,501-$413,200 $413,201 + The Tax Due Is: 10% of taxable income $922.50 +15% of the amount over $9,225 $5,156.25 + 25% of the amount over $37,450 $18,481.25 +28% of the amount over $90,750 $46,075.25 +33% of the amount over $189,300 $119,401.25 + 35% of the amount over $411,500 $119,996.25 +39.6% of the amount over $413,200 A. An individual makes $235,000 in a year. What is their marginal tax rate?
First cost of equipment = $200,000Market value at the end of year 6 = $10,000MACRS depreciation is used. The equipment is a 5-year property.Incremental income-tax rate for the company = 35% Year 0 1 2 3 4 5 6 BT-CF (Before Tax Cash Flow) in $ -200K 60K 63K 66K 69K 72K 75KMarket value = 10K The Year 2 taxable income is equal to ________________. Group of answer choices -$1,000 $500 -$350 $400 $750 -$250