After-tax outlay

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  answer is 11.81% Initial outlay of $600,000 with an after-tax cash flow of $120,000 per year for ten years Since after tax cash flow is same throughout the tenure PV annuity factor =Initial outlay/after tax cash flow=600000/120000=5 Now look

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  What is the initial outlay associated with this project? b. What are the annual after-tax cash flows associated with this project, for years 1 through 9? c.

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  Assuming the tax rate of 28%, calculate the initial outlay. Solution helps in computing initial outlay.

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  Initial outlay of $50,000 with an after-tax cash flow of $10,000 per year for eight years B. Initial outlay of $600,000 with an after-tax cash flow of $120,000 per year for ten years C.

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  563327 Computing the after tax cash flow given the information on investment on equipment, sales, gross margin, depreciation, selling general and administrative expenses and tax rate. The initial investment outlay of $20 million for equipment only.

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  $3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000 Less Taxes $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 Profit after Tax $1,800,000 $1,800,000 $1,800,000 $1,800,000 $1,800,000 Add Depreciation $1,000,000 $1,000,000