Calculate the present value after cash flow

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Reference no: EM132052797

A firm invests $85k in a truck and expects th eprifits of the next 5 years to be $16k, $20k, $20k, $17k and $22k (at the end of years1,2,3,4,5) The salvage value at the end of the fifth year is $10K. Also at the end of the fifth year the firm will sell the ruck for $20k. If the profits are taxed 35% and straight line depreciation is used, calculate the present value after cash flow using 5% rate of return.

Reference no: EM132052797

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