What is the after-tax operating cash flow for given year

Reference no: EM131971094

Question: You are evaluating a potential purchase of several light-duty trucks. The initial cost of the trucks will be $194,000. The trucks fall in the MACRS 5-year class that allows depreciation of 20% the first year, 32% the second year, 19% the third year, 12% the fourth year, 11% the fifth year, and 6% the sixth year. You expect to sell the trucks for 29,100 at the end of five years. The expected revenue associated with the trucks is $155,000 per year with annual operating costs of $81,000. The firm's marginal tax rate is 25.0%. What is the after-tax operating cash flow for year 2?

Reference no: EM131971094

Questions Cloud

Create a blog from the information you gathered : Based on the Current Event paper that you are doing this week, create a Blog from the information you gathered for the Current Event assignment.

Abdominal perineal resection and notes : The nurse is assessing the perineal wound in a client who has returned from the operating room following an abdominal perineal resection and notes

How many claims reps should lsi employ next year : How many claims reps should LSI employ next year? Explain. What caseload (average number of pending claims per claims rep) will the claims reps experience?

Why are individuals with b cell deficiencies : Why are individuals with B cell deficiencies are more prone to bacterial infections? A detailed explanation is preferred. Please respond shortly!

What is the after-tax operating cash flow for given year : You are evaluating a potential purchase of several light-duty trucks. The initial cost of the trucks will be $194,000. The trucks fall in the MACRS 5-year class

Determine what are the capitalized costs and which is better : Design B requires 4,000,000 in initial cost. Yearly cost of 600,000 and major upgrades every ten years of 2,000,000.

Inhaler and a beclomethasone inhaler : What would be patient teaching for a client with albuterol inhaler and a beclomethasone inhaler?

What is the effective cost of borrowing of each alternative : Assume monthly payments, a holding period of five years, and no prepayment penalty. What is the effective cost of borrowing of each alternative?

Describe some environmental health hazards : Describe some environmental health hazards that we may be living with indoors. How it may have been affected by indoor or outdoor hazards in the past?

User Account

All Pages