Morgado Inc. has provided the following data to be used in evaluating a proposed investment project: The company's tax rate is 30%. For tax purposes, the entire initial investment will be depreciated over 5 years without any reduction for salvage value. The company uses a discount rate of 19%.
-When computing the net present value of the project,what are the annual after-tax cash receipts?

Question

Morgado Inc. has provided the following data to be used in evaluating a proposed investment project:  The company's tax rate is 30%. For tax purposes, the entire initial investment will be depreciated over 5 years without any reduction for salvage value. The company uses a discount rate of 19%.
-When computing the net present value of the project,what are the annual after-tax cash receipts?

Quizplus · Accepted Answer

The Answer of Morgado Inc. has provided the following data to be used in evaluating a proposed investment project:  The company's tax rate is 30%. For tax purposes, the entire initial investment will be depreciated over 5 years without any reduction for salvage value. The company uses a discount rate of 19%.
-When computing the net present value of the project,what are the annual after-tax cash receipts?