Current Year Loan Interest = $1,663; Depreciation = $10,000; Tax Rate = 34%. The After Tax Cash Flow for the current year is closest to...

Q: Given the following data for Year-1: (EBIT-taxes)=$5 million; Depreciation=$2 million; Capital…

A: (EBIT - Taxes) = $5 million Depreciation = $2 million Capital expenditure = $4 million Working…

Q: For the cash flows below determine the amount in  year 1, if the annual worth in years 1 through 9…

A: Annual Cash flow (CF) = $3500 Interest rate (r) = 0.10 Period (n) = 9 Years Amount in year 1 (P1) =…

Q: An investment of 199 dollars generates after tax cash flows of 40 dollars in Year 1, 80 dollars in…

A: Net Present Value (NPV) is one of the capital budgeting technique which is used to analyze the…

Q: Assume a corportation has earnings before depreciation and taxes of $100,000, depreciation of…

A: Information Provided: EBIT = $100,000 Depreciation = $50,000 Tax = 30%

Q: Calculate the total present value

A: Today’s worth of dollars at a later date is the Present Value of the dollar. For example, the value…

Q: Use the following to determine FCF (Free Cash Flow) for the current year. Assume an effective tax…

A: Free cash flow (FCF) represents the cash remaining for a company after covering its operating…

Q: What is present value of the cash flow at the end of years 1 the cash flow is $1000 and $2000at the…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: 1. Consider the following cash flow payments: An income of $2000 at the end of year 2, an income of…

A: Cash flow diagrams visually represents cash inflows and outflows through a diagram, where any…

Q: An investor owns a property that produces an NOI of $110,000 and has an annual debt service of…

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Q: After tax cash flows are 100,000 a year for 5 years. There is no terminal value. The payback period…

A: Initial Investment = cashflow per year × payback period                             =100000 × 3=…

Q: 4. Find the real After-Tax ROR for the following cash flow. Given 28% tax & i, =8.5% 100K 11K 11K…

A: present value of annuity formula: PVA =A×1-11+RNR where, A= annual payment N = number of years…

Q: Using the following information, and a tax rate of 35%, calculate the yearly cash flow: Sales…

A: Income before tax = Sales - Variable costs - Fixed costs - Depreciation Income before tax = $2,100 -…

Q: Suppose you have the following information for a project. Before-Tax Income After-Tax Cash Flows…

A: Present Value factor = wherei- Interest raten- Time periodPresent value of Cash flows = After Tax…

Q: Table 2 shows cash flow information of business account with rate of return 8% per year. Determine…

A: Rate = 8℅ Year Cash Inflow Cash Outflow Time to Year 11 Cash Flow = Inflow - Outflow 1 13000…

Q: Forecasts Регpetulty 2020 2021 2022 2023 2024 Operating activities: Net income Adjustments to…

A: Free cash flow is the amount remaining after making payment to all the preference holder of the…

Q: At a rate of 8%, what is the present value of the following cash flow stream? $0 at Time 0; $100 at…

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Q: For the cash flow revenues shown below, find the value of G that makes the equivalent annual worth…

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Q: Determine the present worth of the following cash flows based on an interest rate of 7.46% per year,…

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Q: What is the payback period (in annual terms) of the following cashflow stream?

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Q: Can you please confirm my calculations: discount rate is 6%; end of year cash flows are as follows:…

A: Given information: Initial Investment = $20,000 Yearly Cash Flows = $5000 Time = 5 years Discount…

Q: For the cash flows shown, find the value of x that makes the equivalent annual worth in years 1…

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Q: Cash of $12,000 will be received in year 6. Assuming an opportunity cost of capital of 7.2%, which…

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Q: What is the present value of the mixed cash flow pattern as below? Assuming a 3.3% interest rate…

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Q: Consider the following cash flow: Year Cash Flow -$ 29,800 13,900 15,000 11,400 1 2 3 a). What is…

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Q: Given the following information calculate the relevant annual Net Cash Flow After Tax [NCFAT],…

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Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.