What are the after-tax cash flows for the company

Reference no: EM131936649

Question: Assume a corporation has earnings before depreciation and taxes of $102,000, depreciation of $63,000, and that it has a 30% tax bracket. What are the after-tax cash flows for the company?

Tone Inc. is evaluating a project with an initial cost of $9,500. Cash inflows are expected to be $1,500, $1,500, and $10,000 in the three years over which the project will produce cash flows. If the discount rate is 6%, what is the net present value of the project?

Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $18,000 but the book value is $32,000. The firm's tax rate for ordinary income is 40%. What is the net cash outflow for the new machine after considering the sale of the old machine? Disregard the effect of depreciation of the new machine if acquired.

Reference no: EM131936649

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