Explanation Given: Revenues $ 45 million Operating and maintenance costs $ 7 m i l l i o n Labor/salary costs $ 15 m i l l i o n Overhead and administrative costs $ 3 m i l l i o n Depreciation allowance $ 8 m i l l i o n Calculation: For this year: Initial revenue is $ 45 million . Calculate the expenses to the firm. Expenses = $ 7 million + $ 15 million + $ 3 million = $ 25 million Calculate the taxable income. Taxable Income = ( Total income ) − ( Expenses ) − ( Depreciation ) ...... (I) Substitute $ 45 million for Total income and $ 25 million for Expenses and $ 8 m i l l i o n for Depreciation in Equation (I). Taxable Income = $ 45 million − $ 25 million − $ 8 m i l l i o n = $ 12 million Calculate the tax due as per the tax slab. Tax = 3.4 + 35 % ( 12 − 10 ) = $ 4.1 million Calculate the net profit after tax. Net profit = ( 45 − 25 − 4

13th Edition

ISBN: 9780190296902

Author: Donald G. Newnan, Ted G. Eschenbach, Jerome P. Lavelle

Publisher: Oxford University Press

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Question

Chapter D, Problem 116P

To determine

The change in firm’s after tax net profit.

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Chapter D, Problem 115P

Chapter D, Problem 117P

Chapter D Solutions

Engineering Economic Analysis

Ch. D - Prob. 1P Ch. D - Prob. 2P Ch. D - Prob. 3P Ch. D - Prob. 4P Ch. D - Prob. 5P Ch. D - Prob. 6P Ch. D - Prob. 7P Ch. D - Prob. 8P Ch. D - Prob. 9P Ch. D - Prob. 10P

Ch. D - Prob. 11P Ch. D - Prob. 12P Ch. D - Prob. 13P Ch. D - Prob. 14P Ch. D - Prob. 15P Ch. D - Prob. 16P Ch. D - Prob. 17P Ch. D - Prob. 18P Ch. D - Prob. 19P Ch. D - Prob. 20P Ch. D - Prob. 21P Ch. D - Prob. 22P Ch. D - Prob. 23P Ch. D - Prob. 24P Ch. D - Prob. 25P Ch. D - Prob. 26P Ch. D - Prob. 27P Ch. D - Prob. 28P Ch. D - Prob. 29P Ch. D - Prob. 30P Ch. D - Prob. 31P Ch. D - Prob. 32P Ch. D - Prob. 33P Ch. D - Prob. 34P Ch. D - Prob. 35P Ch. D - Prob. 36P Ch. D - Prob. 37P Ch. D - Prob. 38P Ch. D - Prob. 39P Ch. D - Prob. 40P Ch. D - Prob. 41P Ch. D - Prob. 42P Ch. D - Prob. 43P Ch. D - Prob. 44P Ch. D - Prob. 45P Ch. D - Prob. 46P Ch. D - Prob. 47P Ch. D - Prob. 48P Ch. D - Prob. 49P Ch. D - Prob. 50P Ch. D - Prob. 51P Ch. D - Prob. 52P Ch. D - Prob. 53P Ch. D - Prob. 54P Ch. D - Prob. 55P Ch. D - Prob. 56P Ch. D - Prob. 57P Ch. D - Prob. 58P Ch. D - Prob. 59P Ch. D - Prob. 60P Ch. D - Prob. 61P Ch. D - Prob. 62P Ch. D - Prob. 63P Ch. D - Prob. 64P Ch. D - Prob. 65P Ch. D - Prob. 66P Ch. D - Prob. 67P Ch. D - Prob. 68P Ch. D - Prob. 69P Ch. D - Prob. 70P Ch. D - Prob. 71P Ch. D - Prob. 72P Ch. D - Prob. 73P Ch. D - Prob. 74P Ch. D - Prob. 75P Ch. D - Prob. 76P Ch. D - Prob. 77P Ch. D - Prob. 78P Ch. D - Prob. 79P Ch. D - Prob. 80P Ch. D - Prob. 81P Ch. D - Prob. 82P Ch. D - Prob. 83P Ch. D - Prob. 84P Ch. D - Prob. 85P Ch. D - Prob. 86P Ch. D - Prob. 87P Ch. D - Prob. 88P Ch. D - Prob. 89P Ch. D - Prob. 90P Ch. D - Prob. 91P Ch. D - Prob. 92P Ch. D - Prob. 93P Ch. D - Prob. 94P Ch. D - Prob. 95P Ch. D - Prob. 96P Ch. D - Prob. 97P Ch. D - Prob. 98P Ch. D - Prob. 99P Ch. D - Prob. 100P Ch. D - Prob. 101P Ch. D - Prob. 102P Ch. D - Prob. 103P Ch. D - Prob. 104P Ch. D - Prob. 105P Ch. D - Prob. 106P Ch. D - Prob. 107P Ch. D - Prob. 108P Ch. D - Prob. 109P Ch. D - Prob. 110P Ch. D - Prob. 111P Ch. D - Prob. 112P Ch. D - Prob. 113P Ch. D - Prob. 114P Ch. D - Prob. 115P Ch. D - Prob. 116P Ch. D - Prob. 117P Ch. D - Prob. 118P Ch. D - Prob. 119P Ch. D - Prob. 120P Ch. D - Prob. 121P Ch. D - Prob. 122P Ch. D - Prob. 123P Ch. D - Prob. 124P Ch. D - Prob. 125P Ch. D - Prob. 126P Ch. D - Prob. 127P Ch. D - Prob. 128P Ch. D - Prob. 129P Ch. D - Prob. 130P Ch. D - Prob. 131P Ch. D - Prob. 132P Ch. D - Prob. 133P Ch. D - Prob. 134P Ch. D - Prob. 135P Ch. D - Prob. 136P Ch. D - Prob. 137P Ch. D - Prob. 138P Ch. D - Prob. 139P

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