3) (Below table shows the calculations for an after-tax analysis of a machine purchase alternative.EOYВТСРDepreciationDeductionТахableIncomeАТCFIncomeТаxes- 20,00016,00016,00016,00016,00016,00018,0003,0003,0003,0003,0003,0003,00013,00013,00013,00013,00013,00015,000- 6,500- 6,500- 6,500- 6,500- 6,500- 7,500- 20,0009,5009,5009,5009,5009,5001346.10,500a) Find answers to the below questionsWhat are the cost basis (price) and "annual revenues less expenses"?What is the terminal market value (or salvage value)?What is the income tax rate?i.ii.iii.iv.What is the method used for depreciation deduction?What is the book value at the end of useful life?V.b) Calculate the equivalent present worth (PW) and the equivalent annual worth (AW) at anafter-tax MARR of 11%.

Present worth computes the existing value of future benefits by discounting future worth with a…

3) ( Below table shows the calculations for an after-tax analysis of a machine purchase alternative. EOY ВТСР Depreciation Taxable Income АТCF Deduction Income Таxes - 20,000 16,000 16,000 16,000 16,000 16,000 18,000 0. - 6,500 - 6,500 – 6,500 - 6,500 – 6,500 - 7,500 - 20,000 9,500 9,500 9,500 9,500 9,500 10,500 | 1 2 3 3,000 3,000 3,000 3,000 3,000 3,000 13,000 13,000 13,000 13,000 13,000 15,000 4 6 a) Find answers to the below questions i. What are the cost basis (price) and "annual revenues less expenses"? What is the terminal market value (or salvage value)? What is the income tax rate? ii. iii.

3) ( Below table shows the calculations for an after-tax analysis of a machine purchase alternative. EOY ВТСР Depreciation Taxable Income АТCF Deduction Income Таxes - 20,000 16,000 16,000 16,000 16,000 16,000 18,000 0. - 6,500 - 6,500 – 6,500 - 6,500 – 6,500 - 7,500 - 20,000 9,500 9,500 9,500 9,500 9,500 10,500 | 1 2 3 3,000 3,000 3,000 3,000 3,000 3,000 13,000 13,000 13,000 13,000 13,000 15,000 4 6 a) Find answers to the below questions i. What are the cost basis (price) and "annual revenues less expenses"? What is the terminal market value (or salvage value)? What is the income tax rate? ii. iii.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter24: Multistate Corporate Taxation

Section: Chapter Questions

Problem 32P

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EBITDA can be calculated using following formula |depreciation EBITDA + %3D EBIT + ammortisation EAT interest tax
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