[pratim]

Thank You So Much Sir For The Help And Support Throughout.

[pratim]

Thanks 🙂

[pratim]

Thanks 🙂

[pratim]

Solution In Kaplan Reads:

Ignoring Tax Allowable Depreciation, After Tax Cash Flow From Year Five Onwards Into Perpetuity Will Be: 2,802,000 – 785,000 = $ 2,017,000 Per Year.

Present Value Of This Cash Flow In Perpetuity = (2017000/0.11) x 0.659 = $12,083,664.

There Would Be Further Six Years Of Tax Benefits From Tax Allowable Depreciation. The Present Value Of These Annuity Cash Flows Would Be 112,000 x 4.231 x 0.659 = $312,282.

Increase In NPV Of Production And Sales Continuing Beyond The First Four Years Would Be 12,083,664 + 312,282 = $12,395,946 Or Approximately $12.4Million.

NPV = (2,129,000 x 0.593) – 139,000 = 1,262,497 – 139,000 = $1,123,497.

[pratim]

I Got The Conclusion. But I Am Still Not Able To Understand The Figures Used By Them. Plus, They Haven’t Showed Any Workings Too. Will Really Appreciate If You Help Me With This Further.

[pratim]

I Got This Sir. Thanks To Your Lectures 🙂

[pratim]

Thanks Sir. I Do Watch Your Lectures. I Might Have Just Skipped This Point. Apologies!

[pratim]

Thanks Sir.

[pratim]

Sir, I Have Watched All Your Lectures 🙂 While Revising I Came To This Point.

Thanks A Lot For Help!

I Am Really Sorry For Disturbing 🙂

[pratim]

Thanks Sir! Yes I Really Get Benefitted By Watching Your Lectures. 🙂

[pratim]

Yes. Now I Got It Sir. Thanks A Lot! 🙂

[pratim]

Thanks Sir. I Do Watch Your Lectures. But This Is Something Which I Haven’t Still Figured Out. A Further Help Will Be Appreciated.

[Author]

Posts