Please answer quickly and co ATCF11 = $ATCF 12 = $-102581b. Determine the PW of the after-tax cash flows.PWST = $16500c. Determine the AW of the after-tax cash flows.AW $T = $=-160221.2738d. Determine the FW of the after-tax cash flows.FW $T = $e. Determine the combined IRR of the after-taxcash flows.IRRC=-28667.06298=%f. Determine the combined ERR of the after-taxcash flows.ERRC%g. Determine the real IRR of the after-tax cashflows.IRR₁ =%h. Determine the real ERR of the after-tax cashflows.ERRr% Henredon purchases a high-precision programmablerouter for shaping furniture components for$190,000. It is expected to last 12 years and have asalvage value of $4,400. Henredon will borrow$100,000 at 12.4% over 6 years, paying only interesteach year and paying all the principle in the sixthyear. It will produce $42,000 in net revenue eachyear during its life. All dollar amounts are expressedin real dollars. Depreciation follows MACRS 7-yearproperty, taxes are 25%, the real after-tax MARR is10%, and inflation is 3.9%.a. Determine the actual after-tax cash flows foreach year.ATCFO = $ATCF₁ = $ATCF₂ = $ATCF3 = $ATCF4 = $ATCF5 = $ATCF6 = $ATCF7 = $ATCF8 = $ATCF9 = $ATCF10 = $-1900009712.254867.258192.2510567.2512258.251226316500165001650016500

To determine the actual after-tax cash flows for Henredon's purchase of the high-precision…

Answered: ATCF1₁1 = $ ATCF12 = $ -102581 b.…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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A borrower bought a house for $250,000; he can obtain an 80% loan with a 30-year fully amortizing, 6% interest rate and monthly payment. Assuming the marginal tax rate for the borrower is 25%. Maintain and insurance are currently $1,200 each per year, Selling cost is 6% of sale; property tax is 2% of the value each year, property value increases 5% per year. What is the first year total tax deduction from owning? $4250.0 $4920.71 53940.0 $3729.25
Pane 3. Assume a company receives cash from different geographic areas of $500,000 daily. The average float of the cash receipt is 4 days. Interest rate on savings is 6% per year. If the company institutes a lock-box system, it will reduce the float to two days. It will cost $80,000 to install the lock-box system and an additional monthly fee of $1,000 to operate it. Should the company install the lock-box system?
Suppose the business receives the revenue at the end of the month, what is the CLV value computed from the initial assumption? (Keep 2 decimal places, no $ sign). A 1 Chum Rate 2 Retention Rate 3 Interest Rate 4 Profit Growth Rate month 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 M 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Skip question 0.25 CLV per customer (Net Present Value $ 0.75 Converting to beginning of period 0.15 $ 0 MeanProfit (if still here) Number of Customers in Cohort (100.00) 30.00 30.00 30.00 30.00 30.00 30.00 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8 $ 9 $ 10 $ 11 $ 12 $ 13 $ 14 $ 15 $ 16 $ 17 $ 18 $ 19 $ 20 $ 21 $ 22 $ 23 $ 24 $ 25 $ 26 $ 27 $ 28 $ 29 $ 30 $ Start Solving 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 Exit Profit 1000 $ (100,000.00) 979 $ 29,375.00 28,763.02 28,163.79 27,577.05 27,002.52 26,439.97 25,889.14 25,349.78 24,821.66 24,304.54 23,798.20 23,302.40 22,816.94…
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You are the owner of DDD Company. The company is engaged in providing services to telecommunication companies. It has a multi-million sales. However, on an average collection cycle, you only collect the sales after 6 months. Upon reviewing the company's financial statements, you notice a large number of receivables and a large number of payables. The company is having a hard time paying its debts since it cannot collect promptly the receivables. The sales manager told you that the company cannot stop accepting projects because there are many competitors in the market. On the other hand, the collection manager suggested collecting first the receivables before accepting a new project. If you are the owner of DDD Company, what should you do? Give three reaons and explain why
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