In order to determine the after-tax cash flows for production equipment, the following analysis table was prepared. Based on the partial information on the table, and using an income tax rate of 24%, answer thefollowing question:Calculate the ATCF for year 2A. $9,074B. $7,390C. $11,566OD. $3,138○ E. $4,150Year0BTCFDepreciationTaxable Income Income TaxesATCF- $18,0001$8,700$1,8002$8,700$3,240$1,310??3$8,700$2,5923$6,300

The objective of the question is to calculate the After-Tax Cash Flow (ATCF) for year 2 based on the…

Answered: In order to determine the after-tax…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Before-tax internal rate of return (IRR) will always equal after-tax IRR. O True O False
N7
A project capitalized for P 2,850,000 invested in depreciable asset will earn a uniform annual revenue of P 1,650,000 for 10 years. The costs for operation and maintenance total P 725,000 a year, and taxes and insurance will cost 3% of the first cost each year. The company expects its capital to earn 14% before income taxes. *** Type the letter of the correct answer. Using ROR method 1. The depreciation cost is: a) P 546,383.59 2. The total annual cost is: a) P 957,883.59 3. The rate of return is: • Using AW method 5. The annual revenue is: a) 44.92% 4. Is this a desirable investment? a) NO b) YES a) P 1,750,000 6. The total annual cost is: a) P 1,755,883.59 7. Annual worth is: b) P 147,383.59 a) P 293,116.41 8. Would you recommend a) NO b) P 1,356,883.59 b) 38.85% b) P 3,240,000 b) P 1,543,606.94 b) - P 105,883.59 investing? b) YES c) P 285,000.00 c) P 1,144,606.94 c) 24.28% c) MAYBE c) P 2,429,600 c) P 1,356,883.59 c) P 155,500.00 c) MAYBE d) P 334,106.94 d) P 1,095,500.00 d) 22.46%…
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%
smallville is suffering annual losses of taxable properties and property values of 1% each. Even so, Smallville must maintain its tax collections at a constant value of $3.2 million to maintain services. What is the required rate of increase in the tax rate? NOTE: While smallville uses a rate of 6% for the time value of money, that rate is irrelevant to this problem. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
A company has a unit contribution margin of $50, fixed costs of $15,000 and a target profit of $20,000 after-tax. If the tax rate is 20% the company must sell ________ units in order to earn the target profit.
First cost of equipment = $200,000 Market value at the end of year 6 = $10,000 MACRS 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 in $ -200K 60K 63K 66K 69K 72K 75K Market value = 10K The first-year after tax-cash flow is equal to _____________.
K In order to determine the after-tax EUAC of a factory equipment, the following analysis table was prepared. Based on the partial information on the table, and using an income tax rate of 21%, answer the following question Year BTCF Depreciation Taxable Income Income Taxes ATCF 0 - $13,000 1 - $3,200 $1,300 2 - $3,200 $2,340 3 - $3,200 $1,872 3 $4,550 Calculate the income tax amount for year 2 (note that it is a tax credit, since the BTCF is a cost) OA. $491 OB. $672 OC. $1,163 OD. $1,367

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