CLASS / COURSE: TAM 501

QUESTION DESCRIPTION:

Use the Pro Forma below, fill in the needed line items and answer these questions.
Assume initial capital investment is $2,735,000
Assume an after tax cash flow of $105,000 for capital expenditures.
The capital expenditures is a non-income statement item but each year's expenditure is reflected in subsequent year's
depreciation schedule(s).
Note: Loan payment is amortizing but not a level payment per period.

Question Point Value
5 4 Given the pro forma income statement, calculate the after tax cash flow for each year.
Fill in the line items missing, given the information provided (such as the tax rate).
Calculate the NPV of the after tax cash flow; use: 14.0%


I will like questions 5 - 16 answered on the spreadsheet I just uploaded.

 

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SUBJECTS / CATEGORIES:
1. Finance
2. Financial Management
3. Corporate Finance

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