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    After Tax Cash Flow

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    I'm trying to understand how to calculate the After Tax Cash Flow value in the scenario below for each mutually exclusive option. To calculate the Present value or IRR (Internal rate of return) you need to have an after tax cash flow with the Purchase cost in year zero and the Annual cash in each year of the trucks life. The depreciation is straight line At the end of the truck's life it has no salvage value. So, how do I go about calculating the After Tax Cash Flow, NPV, and IRR of each scenario.

    Truck Type Cost Annual profit before interest, Life in Years
    tax, and depreciation
    New $100,000 $40,000 5
    Ultra $160,000 $60,000 5
    Used $30,000 $25,000 2

    Cost of capital = 10%
    Tax Rate = 40%.

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    Solution Summary

    Excel file contains calculation of after tax cash flow.