ABC Corp has just hired you as a Capital Budgeting - 12298

Solution Posted by
yousafbhutta

yousafbhutta

Rating : (28)C
Solution Detail
Price: $3.00
  • From: Business,
  • Posted on: Sun 08 Jul, 2012
  • Request id: None
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Request Description

 

ABC Corp has just hired you as a Capital Budgeting Officer. Your first assignment is to estimate the After Tax Cash Flows (ATFC) for Year 1 through yr 5 for the following project

 

PROJECT FACT SET

 

1.     Cost = $ 10m

 

2.     Life = 5 Years

 

3.     Straight Line Depreciation to a Book Value of ZERO

 

4.     Marginal Revenue= $6.5m per year

 

5.     Variable Cost = 60% of Revenue per yr

 

6.     Fixed Cost = $1.0 m per yr

 

7.     Marginal Tax Rate = 35%

 

 

 

I just need to know the After Tax Cash Flows (ATFC) for Year 1 through yr 5 for the following project

 

 

 

Solution Description

 

Please give me your A+++ rating in it and you will get t

Attachments
Solution p5.xlsx
Solution p5.xls...