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Calculate DPBP for the investment. MARR is 7%
Using the above tax rate (overall tax rate) construct an after tax cash flow and calculate PW, AW, and IRR for the ATCF.
Net CF (Before Tax) (6,000,000.00) Period Initial Investment HOperating Cost 0 $ Revenue Depreciation Rate Depreciation EBT (6,000,000.00) $(6,000,000.00) 1,302,600.00 (857,400.00) $ (1,469,400.00) $ (1,049,400.00) $ 1,110,600.00 (749,400.00) $ 1,410,600.00 (535,800.00) $1,624,200.00 (535,200.00) $ 1,624,800.00 (535,800.00) $ 1,624,200.00 (5,400,000.00) $ 7,560,000.00 $ $ (5,400,000.00) $ 7,560,000.00 $ $(5,400,000.00) $7,560,0000.00 $ $ (5,400,000.00) $ 7,560,000.00 $ $(5,400,000.00) $ 7,560,000.00 $ $ (5,400,000.00) $ 7,560,000.00 $ $(5,400,000.00) $ 7,560,000o.00 $ (5,400,000.00) $ 7,560,000.00 $ $ (5,400,000.00) $ 7,560,000.00 $ (5,400,000.00) 7,560,000.00 $ PW 14.29% $ 2,160,000.00 1 24.49% $ 2 2,160,000.00 690,600.00 17.49% $ 3 2,160,000.00 12.49% $ 4 2,160,000.00 8.93% $ 5 2,160,000.00 8.92% $ 6 2,160,000.00 8.93% 7 2,160,000.00 8 2,160,000.00 4.46% $ (267,600.00) $ 1,892,400.00 $ 2,160,000.00 0% $ 0% $ 2,160,000.00 $2,160,000.00 10 2,160,000.00 6,720,741.14 IRR 34.08% Federal Tax Rate Options State Tax Rate 8% 20% 1 Net CF (Before Tax) (6,000,000.00) Period Initial Investment HOperating Cost 0 $ Revenue Depreciation Rate Depreciation EBT (6,000,000.00) $(6,000,000.00) 1,302,600.00 (857,400.00) $ (1,469,400.00) $ (1,049,400.00) $ 1,110,600.00 (749,400.00) $ 1,410,600.00 (535,800.00) $1,624,200.00 (535,200.00) $ 1,624,800.00 (535,800.00) $ 1,624,200.00 (5,400,000.00) $ 7,560,000.00 $ $ (5,400,000.00) $ 7,560,000.00 $ $(5,400,000.00) $7,560,0000.00 $ $ (5,400,000.00) $ 7,560,000.00 $ $(5,400,000.00) $ 7,560,000.00 $ $ (5,400,000.00) $ 7,560,000.00 $ $(5,400,000.00) $ 7,560,000o.00 $ (5,400,000.00) $ 7,560,000.00 $ $ (5,400,000.00) $ 7,560,000.00 $ (5,400,000.00) 7,560,000.00 $ PW 14.29% $ 2,160,000.00 1 24.49% $ 2 2,160,000.00 690,600.00 17.49% $ 3 2,160,000.00 12.49% $ 4 2,160,000.00 8.93% $ 5 2,160,000.00 8.92% $ 6 2,160,000.00 8.93% 7 2,160,000.00 8 2,160,000.00 4.46% $ (267,600.00) $ 1,892,400.00 $ 2,160,000.00 0% $ 0% $ 2,160,000.00 $2,160,000.00 10 2,160,000.00 6,720,741.14 IRR 34.08% Federal Tax Rate Options State Tax Rate 8% 20% 1
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