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Posted by: Homeworkhelp
Price Quoted by Student: $4
Posted On: 2011-03-29 01:01:20
 
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P11-6 A four-year project has cash flows before taxes and depreciation of $12,000 per year.  The

 

ANSWER KEY SOLUTION P11-6 A four-year project has cash flows before taxes and

 

P11-6 A four-year project has cash flows before taxes and depreciation of $12,000 per year.  The project requires the purchase of a $50,000 asset that will be depreciated over five years, straight line.  At the end of the fourth year the asset will be sold for $18,000.  The firm's marginal tax rate is 35%.  Calculate the cash flows associated with the project.  (For convenience assume the gain on the sale of the asset is taxed at 35%.)


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ANSWER KEY SOLUTION P11-6 A four-year project has
Price $4
Attachment 1: P11-6 A four-year project.doc
Solution Posted By: Homeworkhelp    Posted on: 29-03-2011