Complete the following table assuming use of straight line depreciation. Net cas

Question

Complete the following table assuming use of straight line depreciation. Net cash flow equals the amount of income before deperciation minus the income taxes.. Please use the formatt provided the reference picture is the last picture in the stream Complete the following table assuming use of MACRS deperciation. Net cash flow equals the income amount before deperciation minus the income taxes. Compute the net present value of the investment if straight line deperciation is used. Use 8% as the discount rate. Compute the net present value of the investment IF MACRS deperciation is used. Use 8% as the discount rate

Explanation / Answer

Part-1

Part-2

Part-3

Part-4

Years Income Before Depreciation Straight Line Depreciation Taxable Income Income Tax Net Cash flows Year-1 $70500 $9700 $60800 $21888 $48612 Year-2 $70500 $19400 $51100 $18396 $52104 Year-3 $70500 $19400 $51100 $18396 $52104 Year-4 $70500 $19400 $51100 $18396 $52104 year-5 $70500 $19400 $51100 $18396 $52104 Year-6 $70500 $9700 $60800 $21888 $48612

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