Consider and model before tax cash flows and after tax cash flows in your models...

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Finance

Consider and model before tax cash flows and after tax cash flows in your models and then determine the appropriate output for your model. Assume straight line depreciation. Inputs from the user would include initial investment, marginal tax rate, useful life, salvage value, MARR, annual benefits (revenue), and annual costs.

Your model should show the before tax and after tax cash flows as well as the PV of the AFTC in each year and of course the NPV, which is the final soluition. Please show the formulas used in excel. I tried to solve this and got $27,944.18 for the final NPV but I am not sure if this right or not, I appreciate any help with this.

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6.3 - Depreciation and Taxes For this week's assignment, update the spreadsheets you created in Modules 3 to incorporate depreciation and taxes This will require you to consider and model before tax cash flows and after tax cash flows in your models and then determine the appropriate output for your model. Assume straight line depreciation only. A simple example is in Chapter Inputs from the user would include initial investment, marginal tax rate, useful life, salvage value, MARR, annual benefits (revenue), and annual costs The inputs for your submission are 100,000 $81,155 Initial Cost Annual Revenues Annual Costs (Excluding Depreciation Year 3 Overhaul Year 6 Clean-up Costs Equipment Salvage/Book Value Useful Life r (this was not provided in 2.3) Tax Rate Equipment Sold For $20,000 $15,390 $17,690 $10,000 6 years 0.10 0.35 $20,000 Your model should show the before tax and after tax cash flows as well as the PV of the AFTC in each year and of course the NPV, which is the final solution. Your submission should include the model in ready to use clean version and a completed model using the above information (on separate tabs)

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