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Before-Tax Annual PMT Of The Investment
Before-Tax Annual PMT Of The Investment
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Order Number |
636738393092 |
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Type of Project |
ESSAY |
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Writer Level |
PHD VERIFIED |
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Format |
APA |
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Academic Sources |
10 |
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Page Count |
3-12 PAGES |
Instructions/Descriptions
Calculating the Before-Tax Annual PMT Of The Investment
Question Description
A potential investment has a cost of $555,000 and a useful life of 6 years. Annual cash sales from the investment are expected to be $201,135 and annual cash operating expenses are expected to be $79,235. The expected salvage value at the end of the investment’s life is $80,000. The company uses straight-line depreciation for all assets based on the full cost of the assets.
The company has a before-tax discount rate of 16%, an after-tax discount rate of 13%, and a tax rate of 35%.
Required:
Assume the company wants to consider this investment before-tax. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (i.e. .055 = 5.5%). Enter negative amounts with a minus sign.)
| Calculate the before-tax annual PMT of the investment | $ |
| Calculate the before-tax FV of the investment | $ |
| Calculate the before-tax NPV of the investment | $ |
| Calculate the before-tax IRR of the investment | % |
Assume the company wants to consider this investment after-tax. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (i.e. .055 = 5.5%). Enter negative amounts with a minus sign.)
| Calculate the after-tax annual PMT of the investment | $ |
| Calculate the after-tax FV of the investment | $ |
| Calculate the after-tax NPV of the investment | $ |
| Calculate the after-tax IRR of the investment | % |
Calculating the Before-Tax Annual PMT Of The Investment
Question Description
A potential investment has a cost of $555,000 and a useful life of 6 years. Annual cash sales from the investment are expected to be $201,135 and annual cash operating expenses are expected to be $79,235. The expected salvage value at the end of the investment’s life is $80,000. The company uses straight-line depreciation for all assets based on the full cost of the assets.
The company has a before-tax discount rate of 16%, an after-tax discount rate of 13%, and a tax rate of 35%.
Required:
Assume the company wants to consider this investment before-tax. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (i.e. .055 = 5.5%). Enter negative amounts with a minus sign.)
| Calculate the before-tax annual PMT of the investment | $ |
| Calculate the before-tax FV of the investment | $ |
| Calculate the before-tax NPV of the investment | $ |
| Calculate the before-tax IRR of the investment | % |
Assume the company wants to consider this investment after-tax. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (i.e. .055 = 5.5%). Enter negative amounts with a minus sign.)
| Calculate the after-tax annual PMT of the investment | $ |
| Calculate the after-tax FV of the investment | $ |
| Calculate the after-tax NPV of the investment | $ |
| Calculate the after-tax IRR of the investment | % |
Calculating the Before-Tax Annual PMT Of The Investment
