1. Business
  2. Economics
  3. table p1012 nondiscounted cash flow calculations for problem 1012 all...

Question: table p1012 nondiscounted cash flow calculations for problem 1012 all...

Question details

Table P10.12. Nondiscounted Cash Flow Calculations for Problem 10.12 (All Figures Are in $Millions) Net Profit After-Tax End of Year Investment Allowance from Sales Annual Costs Net Profit Income Tax after Tax Cash Flow Capital Depreciation Revenue Total (10) (25) (20) (35) 14.77 25.93 (25) (20) (15 20) 8.57 8.57 8.57 10 28 73 70 120 120 120 120 120 120 120 120 120 3.80 10.64 27.74 26.80 22.80 26.22 30.40 30.40 30.40 30.40 17.36 45.26 43.40 37.20 47 51.97 60 69 51.35 58.17 49.60 49.60 19.60 10 49.60 49.60 49.60 49.60 40 40 12 13 40 Numbers in () represent negative values. Land cost 0 Plant started up at end of year 3. Working capital 50. Use a 10% discount rate for Parts (d) and (e) 13. From the data given in Table P10.12, determine the following information regarding the calculations performed for this analvsis: a. What taxation rate was assumed? b. What was the total fixed capital investment? c. What method of depreciation was used? d. What was the cost of manufacturing, not including depreciation?

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution