StraightLine MACRS Depreciation Depreciation Year 1 Year 2 Y

Straight-Line MACRS Depreciation Depreciation Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $11,000 22,000 22,000 22,000 22,000 11,000 $22,000 35,200 21,120 12,672 12,672 6,336 Totals $110,000 $110,000

Solution

Answer 1

51640

Answer 2

Answer 3

Answer 4

128279.9427

	Income Before depreciation	Straight-Line Depreciation	Taxable Income	Income taxes	Net cash flows
Year 1	74500	11000	63500	22860	51640
Year2	74500	22000	52500	18900	55600
Year 3	74500	22000	52500	18900	55600
Year 4	74500	22000	52500	18900	55600
Year 5	74500	22000	52500	18900	55600
Year 6	74500	11000	63500	22860	51640