Annual Before Tax Cash Flow

Related BrainMass Solutions

• Jim Bo's currently has annual cash revenues of $240,000 and annual operating expenses of $185,000 including $35,000 in depreciation. The firm's marginal tax rate is 40 percent. A new cutting machine can be purchased for $120,000 that will increase revenues by $50,000 per year while operating expenses would increase to $205,000, including $42,000 in depreciation. Compute Jim Bo's annual incremental after-tax net cash flows.

  . $19,000 Before cash Flow calculation Revenue = 240,000 Operating expenses = 185,000 Profit before tax = 55,000 (revenue - expenses) Tax @40% = 22,000 Profit After Tax = 33000 Depreciation = 35000 Net cash flow = 68000 (Profit after tax

• Managerial Acct

  flow before tax $9,000 Less: Tax @ 34% $3,060 Net cash flow after tax $5,940 Add : Depreciation $6,000 Net Cash flow $11,940 This solution consist of Managerial Accounting.

• Opportunity Yawl NPV

  Opportunity 1 will generate $40,000 before-tax cash flow in years 0, 1 and 2, with a $7,000 annual tax cost. Opportunity 2 will also generate $40,000 before-tax cash flow in years 0, 1 and 2.

• After Tax Cash Flow

  181523 After Tax Cash Flow I'm trying to understand how to calculate the After Tax Cash Flow value in the scenario below for each mutually exclusive option.

• Description of Project Analysis

  What is the terminal cash flow in year 10 (what is the annual after-tax cash flow in year 10 plus any additional cash flow associated with termination of the project)?

• Rucci Inc. 7 years

  Before we are going to find the Net Present Value for this project, we need to find the terminal year cash flow as follows: - Salvage value of the asset 69,000 Tax on salvage value (30%) 20,700 Total termination cash flows 48,300 Net cash

• Finding Annual Operating Cash Flow

  $10,400.0 $22,100.0 $32,500 Less: Fixed costs $2,100 Less: Depreciation expense $900 Income before tax $29,500 Less: Tax @ 34% $10,030 Net income $19,470 Add back: Depreciation $900 Operating cash flow

• Making Capital Investment Decisions: Korry Materials

  Fixed costs $70,000 Depreciation costs $66,675 Operating income before tax $373,750-$5,000-$224,250-$70,000-$66,675 = $7,825 Income tax $7,825 x 40% = $3,130 Operating profit $7,825-$3,130 = $4,695 Year 2 Annual after-tax operating cash flow = $4,695

• Purchase of new equipment

  The annual cash flows are calculated below Year 0 1 2 3 4 5 6 Income before depreciation and tax 170,000 150,000 120,000 105,000 90,000 80,000 Depreciation 44,000 70,400 42,240 25,300 25,300 12,760 Income before tax