Show the before tax and after tax cash flows

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Question

With the provided information use excel to incorporate depreciation and taxes and model before tax cash flows (BTCF) and after tax cash flows (ATCF). Then determine the appropriate output for your model. Assume straight line depreciation. Show the before tax and after tax cash flows as well as the PV of the AFTC in each year and the NPV. Inputs from the user include initial investment, marginal tax rate, useful life, salvage value, MARR, annual benefits (revenue), and annual costs. The inputs are:

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 0.10

Tax Rate 0.35

Equipment Sold For $20,000

Reference no: EM132344267

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