Calculate amount of after-tax profit for the period sales

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1. What is the present value of a stream of 5 end-of-year annual cash receipts of $500 given a discount rate of 14 percent? Use both the appropriate table in the text (Appendix C, Table 2) and the appropri- ate function in Excel to answer this question.

2. Use the appropriate function in Excel to calculate the annual straight-line (SL) depreciation charge for an asset that has a $10,000 acquisition cost, a salvage value of $500, and a useful life of four years.

3.  Given the following information, calculate the amount of after-tax profit for the period: sales, $260; expenses other than depreciation, $140; depreciation, $50; marginal income tax rate, 35 percent. Calculate the net after-tax cash flow effect of the preceding information.

Text Book- Cost Management - A strategic Emphasis| 6th edition.

Reference no: EM13878067

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