Question: ** Show work and formula in excel ** This will require you to consider and model before tax cash flows and after tax cash flows
** Show work and formula in excel **
This will require you to consider and model before tax cash flows and after tax cash flows in your models and then determine the appropriate output for your model. Assume straight line depreciation only.
The inputs are:

The model should show the before tax and after tax cash flows as well as the PV of the AFTC in each year and, of course, the NPV, which is the final solution.
Initial Cost $100,000 Annual Revenues $81,155 Annual Costs (Excluding Depreciation) $20,000 Year 3 Overhaul $15,390 Year 6 Clean-up Costs $17,690 Equipment Salvage/Book Value $10,000 Useful Life 6 years r(this was not provided in 2.3) 0.10 Tax Rate 0.35 Equipment Sold For $20,000Step by Step Solution
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