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STALIN [3.7K]
3 years ago
12

Mariposa Corporation is considering purchasing equipment for $200,000. Mariposa expects this equipment will last for 20 years an

d then be worthless. It anticipates that the equipment will earn the company $18,000 net income before taxes per year. As a regular corporation, Mariposa’s tax rate is 21%. What is Mariposa’s expected cash flow after taxes per year on this equipment?
Business
1 answer:
Westkost [7]3 years ago
6 0

Answer:

$24,220

Explanation:

After tax cashflow formula as follows;

AT cashflow = Income before taxes(1- tax) + annual depreciation amount

Depreciation amount is added back because even though it is an expense deducted to arrive at the income before tax, it is not an actual cash outflow.

Annual depreciation amount = $200,000/ 20 = $10,000

AT cashflow = 18,000*(1-0.21) + 10,000

= 14,220 + 10,000

= 24,220

Therefore, Mariposa’s expected cash flow after taxes per year is $24,220

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Answer:

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3 years ago
A(n) _____ is something a person wants to get out of a job or that brings them job satisfaction.
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Harry owes the bank money. To repay his debt, he paid \$150$150dollar sign, 150 back to the bank each month. After 101010 months
Firdavs [7]

Answer: $8,400

Explanation:

Given the following:

Amount repaid each month = $150

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Amount left after 10 months payment = $6900

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The total amount paid = $150 × 10 = $1500

Amount left = $6900

Total debt amount:

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7 0
3 years ago
. Suppose that a car dealer has a local monopoly selling Volvos. It pays w to Volvo for each car that it sells, and charges each
kicyunya [14]

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The dealer will sell 15 Volvos

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Differentiating with respect to q, we get

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3 years ago
Ring Technology has a capital budget of $850,000, it wants to maintain a target capital structure of 35% debt and 65% equity, an
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Answer:

b. $ 952,500

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3 years ago
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