Fort Wayne Corporation expects the following revenues, cash expenses, and depreciation charges as a result of...

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Fort Wayne Corporation expects the following revenues, cash expenses, and depreciation charges as a result of its recent opening of an affiliated store in Lansing: YEAR 2 3 5 Revenues $16,000 $20,000 $38,000 $48,000 $35,000 Cash Expenses Depreciation $8,000 $5,000 $14,000 $19,000 $19,000 $3,000 $4,000 $3,000 $3,000 $3,000 Fort Wayne is in the 40 percent tax bracket. Please compute the after tax cash flows from this investment in the Lansing store. Fort Wayne Corporation expects the following revenues, cash expenses, and depreciation charges as a result of its recent opening of an affiliated store in Lansing: YEAR 2 3 5 Revenues $16,000 $20,000 $38,000 $48,000 $35,000 Cash Expenses Depreciation $8,000 $5,000 $14,000 $19,000 $19,000 $3,000 $4,000 $3,000 $3,000 $3,000 Fort Wayne is in the 40 percent tax bracket. Please compute the after tax cash flows from this investment in the Lansing store.

Answer rating: 100% (QA)

Answer To compute the aftertax cash flows from the investment in the Lansing store we need to calcul... View the full answer