Question: 9 CASH Flow TABIE STRUCTURE requires a in aproject per year over of $20 million a 6-year ayear period with at time zero values. An
9 CASH Flow TABIE STRUCTURE requires a in aproject per year over of $20 million a 6-year ayear period with at time zero values. An investment alternative in aproject reque Cat 4 $120 millim Completed at time vestment will produce a streom for of $60 million per year over a 6-year per operating Costs of is $20 million ayear at to General inflation ion is is 4% 4% and and taxation is taxation is 40%. Assume individual project basis for taxation in which The Capital expenditure can be fully depreciated over the duration duration of the project on a declining - balance depreciation basis with the half year rule, using CCA = 70% Assume no salvage value and full depreciation of the remaining undepreciated of the remaining Unde preiated amount of the capital cost in the final year. Calculate Show calculations 1) The annual after tax cash flows, in real / constant dollors in a typical Cash flow table (Containing: Revenue, costs, CCA, taxes; current and constant cash flow) after taking into account both taxation and inflation accounts: need to make table to calculate the annual after tax annual Cash flows) ii) The payback period based on annual after tax cash flows of constant dollars. 1) The Cost Cash present worth value of Capital of is 10% flows. assuming a company , based on the after taxe boy 9 CASH Flow TABIE STRUCTURE requires a in aproject per year over of $20 million a 6-year ayear period with at time zero values. An investment alternative in aproject reque Cat 4 $120 millim Completed at time vestment will produce a streom for of $60 million per year over a 6-year per operating Costs of is $20 million ayear at to General inflation ion is is 4% 4% and and taxation is taxation is 40%. Assume individual project basis for taxation in which The Capital expenditure can be fully depreciated over the duration duration of the project on a declining - balance depreciation basis with the half year rule, using CCA = 70% Assume no salvage value and full depreciation of the remaining undepreciated of the remaining Unde preiated amount of the capital cost in the final year. Calculate Show calculations 1) The annual after tax cash flows, in real / constant dollors in a typical Cash flow table (Containing: Revenue, costs, CCA, taxes; current and constant cash flow) after taking into account both taxation and inflation accounts: need to make table to calculate the annual after tax annual Cash flows) ii) The payback period based on annual after tax cash flows of constant dollars. 1) The Cost Cash present worth value of Capital of is 10% flows. assuming a company , based on the after taxe boy
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