Example 2. Our firm has invested 10,000,000TL in year 0 and will start operating in year...
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Example 2. Our firm has invested 10,000,000TL in year 0 and will start operating in year 1. In year 0, a working capital of 500,000 TL is provided for a start from the partners. The straight-line amortization method is employed for the next 6 years and salvage value will be 1,000,000 TL at the end of year 6. If corporate tax is 20%, prepare the net cash flow statement for years 0-6 and apply six investment criteria. (WACC = 15%) 2 3 Years Investment Level of Working Capital Income Expenditure 0 10,000,000 500,000 25% of income. 1 600,000 8,000,000 700,000 9,000,000 800,000 10,000,000 4 400,000 6,000,000 5 300,000 4,000,000 6 150,000 Example 2. Our firm has invested 10,000,000TL in year 0 and will start operating in year 1. In year 0, a working capital of 500,000 TL is provided for a start from the partners. The straight-line amortization method is employed for the next 6 years and salvage value will be 1,000,000 TL at the end of year 6. If corporate tax is 20%, prepare the net cash flow statement for years 0-6 and apply six investment criteria. (WACC = 15%) 2 3 Years Investment Level of Working Capital Income Expenditure 0 10,000,000 500,000 25% of income. 1 600,000 8,000,000 700,000 9,000,000 800,000 10,000,000 4 400,000 6,000,000 5 300,000 4,000,000 6 150,000
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To prepare the net cash flow statement for the investment scenario described we need to calculate th... View the full answer
Related Book For
Principles Of Taxation For Business And Investment Planning 2016 Edition
ISBN: 9781259549250
19th Edition
Authors: Sally Jones, Shelley Rhoades Catanach
Posted Date:
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