C Corp. faces a marginal tax rate of 35 percent. One project that is currently under evaluation has a cash flow in the fourth year of its life that has a present value of P10,000 (after-tax). C Corp. assumes that all cash flows occur at the end of the year and the company uses 11 percent as its discount rate. What is the pre-tax amount of the cash flow in year 4? (Round final answer to the nearest dollar.)

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A: Depreciation year 1= Depreciation rate * Project cost= 0.3333 * 35,000= 11665.50

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A: Given: Cost = $4,700 Net cash inflows = $1,800 Period = 5years rate = 12%

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A: Formulas:

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.