after tax cash flow
Q: a. Calculate the firm's tax liability.
A: A firm's tax liability refers to the total amount of tax debt owed by corporation to a government.…
Q: Explain how does the company’s effective tax rate calculated.
A: Effective interest rate: An effective interest rate is the real return on savings account or any…
Q: How to calculate the indexed cost base for capital gains tax
A: SOLUTION- CAPITAL GAIN TAX- IT IS A TYPE OF TAX APPLIED TO THE PROFITS EARNED ON THE SALE OF AN…
Q: When determining the amount of cash paid for income taxes, what would be indicated by an increase in…
A: Defferred income tax liability indicates that the because of temporary difference between accounting…
Q: How to calculate capital gain tax
A: Capital gain is one of the income heads under the Income Tax Act. It includes the gains arising to…
Q: Describe the procedures for determining after-tax net cash flows in taxable situations?
A: Net cash flow after tax is an important measure used for the purpose of evaluation of company's…
Q: How to Determine Corporate Taxes
A: Corporate taxes are the source of income for the government or the nation which is imposed by the…
Q: How do I calculate and record the related after tax cash flow effect(s)?
A: THE FOLLOWING IS THE ANSWER
Q: How are deferred tax assets and deferred tax liabilities reported in a classified balance sheet?
A:
Q: Understand the estimate tax payment obligations of corporations.
A: Tax Obligation refers to a taxpayer's legal obligation under the tax code to compute the tax…
Q: What are the capital assets subject to capital gains tax?
A: capital assets are significant piece of property which may be the home ,cars investment property…
Q: HOW TO improve tax-planning effort
A: Tax planning is the examination of a financial condition or plan to make sure that all parts work…
Q: What is calculation of before Tax (Equity) Cash Flow? Please provide example.
A: The cash flow, which is generated by an investment after deducting all payments of all expenses from…
Q: What are long-term capital gains? Are they taxed like other income? Explain.
A: A long-term capital gain or loss is the gain or misfortune coming about because of the selling of…
Q: Explain the Revenue Related to Deferred Tax Liabilities.
A: Deferred tax liability is explicitly made when an expense commitment gathered in one budgetary year…
Q: What is a valuation allowance for deferred tax assets
A: A deferred tax asset is the opposite of a deferred tax liability, which can increase the amount of…
Q: current and future tax consequences of transactions accounted for
A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…
Q: What is internal Rate of Return - Before Tax Cash Flow - BTIRR? Please provide example.
A: Before tax IRR (BTIRR) is the IRR calculated on the before tax cash flows. Here, the before tax cash…
Q: Please in calculating return on year end capital employed = profit before tax / capital employed.…
A: Return on capital employed (ROCE): It is the type of profitability ratio that tells how well the…
Q: What Accounting periods and accounting methods available to individuals for tax purposes?
A: Internal Revenue Service (IRS) advises that each taxpayer (individual) must figure taxable income on…
Q: Illustrate what is incremental tax rate?
A: Definition: Tax: Tax is the compulsory legal payment that is imposed by the government.…
Q: Discuss the tax treatment for business and investment expenses.
A: Tax treatments usually explain the procedural computation tax liability of an individual by stating…
Q: e from Tax Evasion?
A: The difference is given as,
Q: What are the determinants of Tax Revenue? Show how you can improve Tax Revenue.
A: Tax revenue is the revenue for the governmental authorities when income earners pay taxes as per the…
Q: What is the value for IHT and capital gain tax (CGT) purposes?
A: What is Inheritance Tax?Inheritance Tax (IHT) is a tax on the estate of someone who has died,…
Q: What are the distinctions between deferred tax assets and deferred tax liabilities?
A:
Q: What is the total tax due?
A: The tax due can be defined as the percentage amount computed over the incomes earned during the…
Q: What is a tax return? brief explain
A: Tax return in a form designed by designated tax authorities which helps taxpayers to disclose their…
Q: Calculate the net income after tax
A: Net profit is also called the profit available to the shareholders or Profit available after meeting…
Q: Explain deferred tax assets.
A: Temporary Difference: Temporary difference refers to the difference of one income recognized by the…
Q: What is the Net Income After Tax?
A:
Q: What is Tax Depreciation?
A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…
Q: Using tax depreciation for tax purposes and straight-line depreciation for financial reporting, do…
A: Deferred tax liability is the amount of tax that is due for the period but not been paid. It arises…
Q: How do you calculate State Tax? How do you calculate FICA Tax
A: State tax: State income tax is a direct tax. State tax is levied by a state in the state the…
Q: Define tax depreciation methods
A: Tax: Tax can be defined as the compulsory fees charged by the government of the country or the…
Q: compute for the after tax cost of debt.
A: 12 Calculate cost of equity using CAPM model as shown below: Cost of equity Risk free…
Q: What is the effect of deferred tax asset and deferred tax liability on the current year’s income tax…
A: Deferred tax assets and deferred tax liability arises because of the timing differences of the…
Q: What are capital gains and losses, and how are they taxed?
A: A capital gain is the amount of profit you receive when you sell a capital asset or is realized when…
Q: How to calculate the answer of Tax Allowable depreciation?
A: Depreciation is the deduction in the value of the asset which leads to deduction in the tax as it is…
Q: Some tax credits are referred to as refundable. What does this mean?
A: A tax may be referred as a “pecuniary burden laid upon individuals or property owners to support…
Q: Under what conditions can deferred tax assets be offset against deferred tax liabilities?
A: Deferred tax assets (DTA) is stated under the head of non- current assets whereas deferred tax…
Q: Explain Residence and domicile for tax purposes
A: Tax is the liability that has to be paid by the individual and the corporation to the federal…
Q: nd or
A: What Is a Tax Refund? Tax refunds usually call for a celebration. But in reality, they often mean…
Q: Effective Tax
A: FICA stands for the Federal Insurance Contributions Act. it is the federal law that needs employers…
Step by step
Solved in 3 steps
- Assume that you calculated the ATER after year 3 as $275,000, the after-tax cash flow in year 4 was $6,800 and grew by 3% until year 8, and the ATER in year 8 was $300,000. Use this information to calculate the incremental IRR for not selling the property and collecting rents for years 4-8. What is the incremental IRR for not selling the property? A. 2.88% B. 4.29% C.-41.90% D. 6.40%The following data are from an after-tax cash flow analysis in year 1 for anew MACRS 5-year property. How much money would be saved in year 1 if 100% bonus depreciation is used? Initial Investment = $180,000 Regular MACRS Depreciation Deduction in Year 1 = $36,000 Before-Tax-and-Loan Cash Flow = $280,000 Loan Principal Payment = $17,500 Interest on Loan = $5,650. a. $30,240 b. $75,600 c. $37,800 d. $36,000.You have been asked to estimate the market value of an income-producing property. The table below provides 5 years of projected cash flows for the property. Use the discounted cash flow approach to income valuation to calculate the market value. Assume that you sell the property at the end of year 5 and that the net proceeds from the sale are $5 million. Also assume that the discount rate is 10%. PGI EGI NOI Year 1 $4.18 million $750,000 $780,000 $811,200 $637,500 $663,000 $689,520 $318,750 $331,500 $344,760 $6.11 million $4.12 million Year 2 $4.40 million Year 3 Year 4 $843,648 $717,101 $358,550 Year 5 $877,394 $745,785 $372,892
- Consider a piece of equipment that initially cost $8,000 and has these estimated annual expenses and MV: End of Year, k 1 2 3 6 7 8 5 years 3 years 4 years If the after-tax MARR is 7% per year, determine the after-tax economic life of this equipment. MACRS (GDS) depreciation is being used (five-year property class). The effective income tax rate is 40%. 6 years Annual Expenses 7 years $3,000 3,000 3,500 4,000 4,500 5,250 6,250 7,750 MV at End of Year $4,700 3,200 2,200 1,450 950 600 300 0 Reread chapter and try again. Use equation to calculate the TC for each year of retention, and solve for EUAC of each year.K You have a depreciation expense of $546,000 and a tax rate of 22%. What is your depreciation tax shield? The depreciation tax shield will be $ (Round to the nearest dollar.)What is the expected after - tax cash flow from selling a piece of equipment if Probst purchases the equipment today for $548, 860.00, the tax rate is 39.9 percent, the equipment will be sold in 3 years for $98, 800.00, and the equipment will be depreciated to $72, 600.00 over 12 years using straight - line depreciation? $106, 885.74 (plus or minus $10) $262, 538.29 (plus or minus $10) - $72, 688.20 (plus or minus $10) $230,867.00 (plus or minus $10) None of the above is within $10 of the correct answer
- Pertinent information for two alternatives A and B is shown below. If i=10%/year and the effective income tax rate is 40%, answer the following true/false questions. Alt. A Alt.B 300,000 50,000 Basis, $ CFBT, $ MACRS Recovery, Years Salvage Value, $ Useful Life, Years O True 200,000 O False 40,000 5 20,000 6 The CFAT of Alt. B at the end of year 1 is less than $5,000. 5 30,000 7Project the OCFs for the next three years considering incomes of $165k, $170K and $180 respectively, and a depreciation of $15K, $16K and $18K respectively. Consider a tax of 25%. (Use the following format: "$11.111; $11.111; $11.111) Answer. $65.588;$69.325;$76.800 Then, calculate the NPV (of the three years projected, don't include the current one) if your investment is $150K and the cost of opportunity is 10% (use the following format: $11.111) Answer $24.619 Decide if you invest or not in this project (use the following format: "Yes" or "No") Answer NoI need the process pleaseYou buy a property for $100,000 in year 0. The building is depreciated using straight-line depreciation over 27.5 year. The NOI is $5,000 in year 1 and grows at 2% thereafter. The building is sold at a the end of year 4 at a terminal cap rate of 6%. Assume an ordinary income tax rate of 35%, a capital gains tax rate of 20%, and a depreciation recapture tax rate of 25%. What is going to be the total tax bill on the sale? O 1,187 O 1,959 O 3,146 O 3,636
- Let us assume that an investor can obtain an 80% LTV loan for a property valued at 500,000 at a 10% interest rate to be amortized over 25 years with monthly payments. If the property generates $70,000 net operating income per year, answer the following. What would be the Before-Tax Cash Flow from the Property Sale (BTCFs) if the property were sold in Year 5 for $440,000? $63,344.93 $816,655.07 $396,382.36 $440,000.00-Suppose a 5-year piece of equipment purchased for 500,000 is sold at the end of year 4 after taking four years of straight- line depreciation. Assume that the equipment is sold for 200,000 and the tax rate is 35%. What is the book value? Is there tax savings on the sale? Is there tax effect?Pertinent information for two alternatives A and B is shown below. If i=10% / year and the effective income tax rate is 40%, answer the following true/false questions. Alt. A Alt.B 300,000 50,000 Basis, $ CFBT, $ MACRS Recovery, Years 5 Salvage Value, $ Useful Life, Years The CFAT at the end of year 3 for Alt. B is between $45,000-$50,000. True False 200,000 40,000 20,000 6 5 30,000 7