Week 8 Excel Spreadsheet to be used with the Practice Set: Years Acquisition stage cash flow: Initial Outlay Operating stage cash flow: Sales Fixed Cost Variable Cost Depreciation expense Taxable income Taxes 0 (800,000) 1 2 3 4 5 6 7 8 After tax income Add back depreciation Operating cash flows 600,000 600,000 600,000 600,000 (220,000) (220,000) (220,000) (220,000) (240,000) (240,000) (240,000) (240,000) (68,000) (68,000) (68,000) (68,000) 72,000 72,000 72,000 72,000 (20,160) (20,160) (20,160) (20,160) 51,840 51,840 51,840 68,000 68,000 68,000 119,840 119,840 119,840 51,840 68,000 119,840 600,000 600,000 600,000 600,000 (220,000) (220,000) (220,000) (220,000) (240,000) (240,000) (240,000) (240,000) (68,000) (68,000) (68,000) (68,000) 72,000 72,000 72,000 72,000 (20,160) (20,160) (20,160) (20,160) 51,840 51,840 51,840 51,840 68,000 68,000 68,000 68,000 119,840 119,840 119,840 119,840 Disposition stage cash flow: 500,000 Total cash flow Present Value (800,000) 872,591 119,840 119,840 119,840 119,840 119,840 119,840 119,840 619,840 Net Present Value 72,591
Week 8 Excel Spreadsheet to be used with the Practice Set: Years Acquisition stage cash flow: Initial Outlay Operating stage cash flow: Sales Fixed Cost Variable Cost Depreciation expense Taxable income Taxes 0 (800,000) 1 2 3 4 5 6 7 8 After tax income Add back depreciation Operating cash flows 600,000 600,000 600,000 600,000 (220,000) (220,000) (220,000) (220,000) (240,000) (240,000) (240,000) (240,000) (68,000) (68,000) (68,000) (68,000) 72,000 72,000 72,000 72,000 (20,160) (20,160) (20,160) (20,160) 51,840 51,840 51,840 68,000 68,000 68,000 119,840 119,840 119,840 51,840 68,000 119,840 600,000 600,000 600,000 600,000 (220,000) (220,000) (220,000) (220,000) (240,000) (240,000) (240,000) (240,000) (68,000) (68,000) (68,000) (68,000) 72,000 72,000 72,000 72,000 (20,160) (20,160) (20,160) (20,160) 51,840 51,840 51,840 51,840 68,000 68,000 68,000 68,000 119,840 119,840 119,840 119,840 Disposition stage cash flow: 500,000 Total cash flow Present Value (800,000) 872,591 119,840 119,840 119,840 119,840 119,840 119,840 119,840 619,840 Net Present Value 72,591
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter7: Fixed Assets, Natural Resources, And Intangible Assets
Section: Chapter Questions
Problem 7.3.1MBA
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