Calculate the net profit after tax for all years

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Reference no: EM132954229

Management is considering the following investment project:

Capital Outlay 100,000

Cash Income PA 59,000

Cash Expenses PA (other than tax) 19,000

Depreciation PA 10,000

Economic Life 10 Years

Salvage Value Zero

Tax Rate Payable (Paid in Year of Income) 30%

Required Rate of Return 20%

Required:

Problem 1: Calculate the following (you may use a financial calculator or software):

(a) The Net Profit after Tax for all years and the Annual Cash Flow

Reference no: EM132954229

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