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baschese baschese
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3 years ago
You estimate that if a new 4D computer graphic display product is launched by your firm, revenues will increase by $3,053 in the first year and 10% each year for the next 3 years. Expenses will be 50% of revenues. Depreciation is computed using MACRS for an asset with a 3-year life and a basis of $7,236. The tax rate is 40%. Compute the second year,s annual cash flows. 

MACRS Depreciation Rates
Year3-Year5-Year
133.33%20.00%
244.45%32.00%


▸ $1,542

▸ $1,881

▸ $2,294

▸ $2,386

▸ $2,974
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 2nd
Authors:
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GrouchoGroucho
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3 years ago
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Just got PERFECT on my quiz
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I appreciate what you did here, answered it right Smiling Face with Open Mouth
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