I have been working on the following problem for some time and can not seem to come to a solide answer! I would appricate any help I can recieve on computing the right answer!
Thank You So Much!!!
The Wet Corp. has an investment project that will reduce expenses by $15,000 per year for 3 years. The project's cost is $20,000. If the asset is part of the 3-year MACRS category (33% first year depreciation) and the company's tax rate is 34%, what is the cash flow from the project in year 1?
How do you find the cash flow when the problem doesn't give you the earnings before deprication and taxes for the first year????
Thank You So Much!!!
The Wet Corp. has an investment project that will reduce expenses by $15,000 per year for 3 years. The project's cost is $20,000. If the asset is part of the 3-year MACRS category (33% first year depreciation) and the company's tax rate is 34%, what is the cash flow from the project in year 1?
How do you find the cash flow when the problem doesn't give you the earnings before deprication and taxes for the first year????