Let's say you are going to be an Uber driver and want to estimate your annual operating after tax cash flows.   Assume the following annual estimates: -trip revenue of $20,000 -depreciation expense of $1,000 -gas and maintenance of $3,000 -insurance of $900 -tax rate of 25% - 5 year project - 10% discount rate - for sake of calculation ease, all cash flows occur on the last day of the year. What is the present value of your OCF?        $61,031   $49,565   $36,861   $57,240   $28,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Let's say you are going to be an Uber driver and want to estimate your annual operating after tax cash flows.   Assume the following annual estimates:

-trip revenue of $20,000

-depreciation expense of $1,000

-gas and maintenance of $3,000

-insurance of $900

-tax rate of 25%

- 5 year project

- 10% discount rate

- for sake of calculation ease, all cash flows occur on the last day of the year.

What is the present value of your OCF?   

 

 

$61,031

 

$49,565

 

$36,861

 

$57,240

 

$28,000

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