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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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3 years ago
Applying Excel: Exercise (Part 2 of 2)
Vilka [71]

Answer:

ROI 15%

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8 0
4 years ago
If Lorenzo stands up at a concert he can see the performance better. He therefore concludes if everyone stood up, everyone could
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The correct answer is letter "B": The statement presents the fallacy of composition.

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6 0
3 years ago
On January 1, 2009, Diego owed $14,033 to his friend Ricardo, who was kind enough not to charge Diego any interest. Each month d
aleksandrvk [35]

Answer:

$481

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