Respuesta :
The present value of $2,725 per year, at a discount rate of 10 percent, if the first payment is received 8 years from now and the last payment is received 21 years from now.
a. $1,132.50 b. $9,884.50\sc. $10,586\sd.1 $2,725\sd.2 - $4,363.50
Explanation
a. The formula for calculating net income is displayed below:
= Sales – Cost of Good Sold – Depreciation – Interest – Income Tax Expense = $34,621 – $24,359 – $6,027 – $2,275 – 377.50 = $1,132.50
The cost of income tax is equal to $377.50 ($34,621 - $24,359 - $6,027 - $2,275) x 25%.
b. Below is a diagram of the operating cash flow:
= EBIT - Income Tax Expense - Depreciation where,
EBIT is calculated as follows: sales - cost of goods sold - depreciation costs ($34,621 - $24,359 - $6,027 = $4,235).
And everything else would stay the same.
Add these values to the formula above now.
Therefore, the amount would be = $4,235 + $6,027 – $377.50 = $9,884.50 c. The computation of the cash flow from assets for 2019 is displayed below:
= Operating Cash Flow - Net Capital Expenditures - Variations in Working Capital, where Net Depreciation and ending fixed assets less beginning fixed assets equal capital capital.
= $24,529 - $19,970 + $6,027 = $10,586
Working capital changes are calculated as (ending current asset balance minus ending current liability balance) minus (starting current asset balance minus beginning current liability balance) = ($8,702 - $4,700) - ($7,075 - $4,010) = $4,002 - $3,065 = $937.
Add these values to the formula above now.
As a result, the value would be = $9,884.50 - $10,586 - $937 = - $1,638.50 d.
1 Following is a computation of the cash flow to creditors:
Interest costs divided by the sum of the long-term debt's initial and ending balances equal $2,725 d.2 Below is a computation of the cash flow to stockholders:
$1,638.50 - $2,725 = - $4,363.50 in cash flow from asset to creditors.
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