Cost of Equipment 60,000
Total Cost of Assets
60,000
Detail
0
1
2
3
4
5
Saving from Purchase of New Equipment 20,000 20,000 20,000 20,000 20,000
Depreciation on New Equipment -19,998 -26,670 -8,886 -4,446 0
Profit Before Tax 2 -6,670 11,114 15,554 20,000
Tax @ 38% -1 2,535 -4,223 -5,911 -7,600
Profit after tax 1 -4,135 6,891 9,643 12,400
Add Back Depreciation 19,998 26,670 8,886 4,446 0
Net Cash Flow
-60,000
19,999
22,535
15,777
14,089
12,400
Cost of Equipment 60,000
Total Cost of Assets
60,000
Detail
0
1
2
3
4
5
Saving from Purchase of New Equipment 20,000 21,200 22,472 23,820 25,250
Depreciation on New Equipment -19,998 -26,670 -8,886 -4,446 0
Profit Before Tax 2 -5,470 13,586 19,374 25,250
Tax @ 38% -1 2,079 -5,163 -7,362 -9,595
Profit after tax 1 -3,391 8,423 12,012 15,655
Add Back Depreciation 19,998 26,670 8,886 4,446 0
Net Cash Flow
-60,000
19,999
23,279
17,309
16,458
15,655
Cost of Equipment 60,000
Working Capital Cost 10,000
Total Cost of Assets
70,000
Assignment No 1 From Book
Question No 1
Question No 2 Part A
Question No 2 Part B
Page 1 of 17
Detail
0
1
2
3
4
5
Net Cash Flow
Last year Net Cash Flow
25,655