Question: Using the chart below, calculate the net cash outlay for this investment. Cost of New Asset $450,000 Installation Costs 13,000 Old Asset Book Value 125,000
Using the chart below, calculate the net cash outlay for this investment.
| Cost of New Asset | $450,000 |
| Installation Costs | 13,000 |
| Old Asset | |
| Book Value | 125,000 |
| Proceeds on Sale | 300,000 |
| Initial Purchase Price | 200,000 |
| Increase in Working Capital | 22,000 |
Income tax rate = 30%
Capital gains tax rate = 15%
Please use Excel
| Inputs | ||
| Cost of New Asset | ||
| Installation Costs | ||
| Old Asset | ||
| Book Value | ||
| Proceeds on Sale | ||
| Initial Purchase Price | ||
| Increase in Working Capital | ||
| Outputs | ||
| Cash Distribution Table | Distribution | Tax Effects |
| Book Value | ||
| Capital Gain | ||
| Capital Loss | ||
| Recaptured Depreciation | ||
| Proceeds on Sale | ||
| Cost of New Asset | ||
| Installation Costs | ||
| Proceeds on Sale,Old Asset | ||
| Taxes on Proceeds on Sale | ||
| Increase in Working Capital | ||
| Net Cash Outlay |
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