Calculate the change in operating cash flow for each year for the following information: The equipment costs $200,000 an
Posted: Fri Jul 01, 2022 7:51 am
Calculate the change in operating cash flow for each year for the following information:
The equipment costs $200,000 and is depreciated using MACRs over five years. The equipment will reduce operating expenses by $ 25,000 per year for five years.
The tax rate is 40%
Working capital needs increase by $10,000 when the machine is placed in service and reduced at the end of the life of the machine. There is no salvage value at the end of five years.
The equipment costs $200,000 and is depreciated using MACRs over five years. The equipment will reduce operating expenses by $ 25,000 per year for five years.
The tax rate is 40%
Working capital needs increase by $10,000 when the machine is placed in service and reduced at the end of the life of the machine. There is no salvage value at the end of five years.