None Given the following information, please cPurchase Price: $900,000 Loan: $750,000, 5%, 25 years (annual payments)Year 1 NOI: $100,000 Year 2 ATCF: $33,000 Year 3 ATCF: $34,000 Use an 85/15 ratio for depreciation. 39 year, straightline. 35% tax rate on income, 15% on long term capital gains, 25% depreciation recapture. What is the after tax cash flowfrom the sale at the end of year 3? and what is the IRR of the investment?

We will systematically analyse the calculations, providing a thorough explanation of each step. 1.…

Answered: Given the following information, please…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...

See similar textbooks

Similar questions

Fill in the shown table below when P = $10,000, S = $2,000 (at the end of four years), and i = 15% per year. Complete the accompanying table and show that the equivalent uniform CR amount equals $3,102.12.
Determine the present worth in year 0 of the following cost. Interest rate is 10% per year. Year Cost ($1000) 0 -850 1 -300 2 -400 -400 -400 -500 WN 3 4 5
Based on the following information, what is the company's Unlevered FCF for the period: EBIT of $500 mm, tax rate of 20%, Depreciation and Amort of $200 mm, Capex of $250 mm and an investment of $50 mm in Net Working Capital. a. $500 mm b. $300 mm c. $650 mm d. $225 mm Please answer fast i give you upvote.
A warehouse is bought at the capitalization ratio of 8.5% for $1,000,000. The buyer used a 65% LTV loan with 6% interest amortized over 15 years, with monthly payments. What is the expected before-tax cash flow for the first year of operations? $19,179 $5,485 Impossible to answer the question from the information provided. $65,821 $85,000
Assume a corportation has earnings before depreciation and taxes of $100,000, depreciation of $50,000, and is in a 30% percent tax bracket. Compute its cash flow using the format. Earnings before depreciation and taxes Depreciation Earnings before taxes Taxes @ 30% Earnings after taxes Depreciation 2a) In problem 1 , how much would cash flow be if there were only $10,000 in depreciation ? All other factors are the same. 2b) How much cash flow is lost due to the reduced depreciation between Problems 1 and 2a?
Purchase Price: $15 million Depreciation: 5 year, straight line of the full purchase amount Expected Salvage Value: $4 million Yearly lease payment (made at the beginning of the year): $2.8 million Tax rate: 30% Cost of Equity: 9% Cost of Debt: 4.29% Debt/Equity Ratio: 2:1 What is the after-tax cost of debt? 3% 0% 3% 0% What is the WACC? 0% 0% 0% 0% What is the after-tax salvage value? $1.0M $4.0M $1.2M $2.8M At what rate should the after-tax salvage value be discounted? 0% 3% 0% 5% At what rate should the depreciation tax shield cash flow be discounted? 0% 3% 0% 5% What is the PV cost of ownership? $9.6M $9.8M $8.9M $8.7M What is the PV cost of leasing? $9.2M $9.0M $8.5M $8.9M
I want answer with explanation and within 1 hr.
Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in year two, $2,000 in year three. $2,500 in year four, and $2,000 in year five. What is the NPV using 8% as the discount rate? For further instructions on net present value in Excel, see Appendix C.
Determine the modified B/C ratio for the following information at 8% interest per year. Cost Component Initial Investment M & O cost Benefits Disbenefits 0.55 1.15 1.80 4.65 Estimated cost $16,000 $1,000 years 1-5 $1,500 years 6-10 $8,000 per year $2,500 per year
(Need a,b,c) Baltar Labs invests $1,000 today, at a rate of 8% for 7 years. a. How much will the investment be worth aŌer the 7 years have passed? b. How much compound interest is earned in year 7? c. How much simple interest is earned in year 7
HOMEWORK-DEPRECIATION/TAXES Initial cost $400,000 $160,000 $30,000 Annual Revenue Annual Expense Recovery Period (expected life) 5 Tax Rate 30% MARR 12% 6. Construct a complete Income Statement using SL 7. Construct an Income Statement using MACRS.
Returns of a Single Asset. Suppose you have invested in 2 assets whose annual returns are shown in the following table. If you invest $1000 in each asset: What will be the value of each asset at the end of year 5? What is the single annual rate which would yield the same value at the end of year 5? (meaning, what is the geometric average annual rate of return?) Year Asset A Asset B 1 -6.01% -9.98% 2 -10.27% 12.30% 3 13.75% 18.15% 4 24.31% -1.69% 5 20.88% 5.00% please use excel

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS