FSICC-IDEA CEI: Central A-Distance.

COURSE: Finance III TUTOR: Josè López

Hoenes.

TOPIC. Problems and Case Chapter 8, from Principles of Fine Management

Problems from Chapter 8 of Finance III
P8-6 Book Value: Calculate the book value of each of the assets shown
the following table, using MACRS depreciation

Activo A B C D E 950,000 40,000 96,000 350,000 1,500,000 5 3 5 5 7

Installed Cost

Recovery Period

Time elapsed since the purchase 3 1 4 1 5

R// Active
T. elapsed

% of Depreciation.

Book value of asset

recovery period.

ct. Installed

AB C D E

950,000 40,000 96,000 350,000 1,500,000

53557

31415

71 33 83 20 78

275,500 26,800 16,320 280,000 330,000

P8-7

Book value and sales tax on the asset: Troy Industries purchased a
new machine 3 years ago at 80,000 dollars, which depreciates with MACRS
through a recovery period of 5 years, assume a tax rate of 40% a. What is
the book value of the machine? b. calculate the tax liability of the company if
I would sell the machine for the following amounts: 100,000, 56,000, 23,200, and 15,000 dollars.

a. Book Value: installed cost Accumulated Depreciation.

80,000 80,000 x (0.20 + 0.32+0.19) 80,000 x 0.71 56,800 80,000 - 56,800 = 23,200
Book value

b. Sales tax. - cto. Sales 100,000 - 23,200 = 76,800 Tax. 0.40 x 76,800 =
30,720 - cost of sales. Sales 56,000 - 23,200 = 32,800 Tax. 0.40 x 32,800 = 13,120 - cost of sales.
23,200-23,200 = 0 taxes are not generated; sales account 15,000-23,200 = -8,200 tax.
0.40 x -8,200 = -3,280. tax credit.
P8-8 Tax Calculation. In each of the following cases, determine the total taxes.
what generated the transaction. Assume a tax rate of 40%. The asset was purchased 2
years at 200,000 dollars and depreciates with the MACRS, over a period of
5-year recovery. Obtain the applicable depreciation percentages. a. the asset is
vendió en 220,000 dólares b. el activo se vendió en 150,000 dólares

c. the asset was sold in d. the asset was sold in

96,000 dollars

R// tax calculation. installed price 200,000 depreciation 200,000 x (0.20+0.32) 200,000 x 0.52 =
104,000 Book value 200,000-104,000 = 96,000 taxes 40% a. 220,000 96,000 x
49600
taxes. d. 80,000 96,000 x 0.40 = -6,400 tax credit.

P8-10
Calculation of the initial investment. Vastine Medical, Inc. Considers the replacement of its system
of the current computer, which was acquired 2 years ago, at a cost of 325,000 dollars. The system
it can be sold today for 200,000. it depreciates with MACRS over a period of
5 year recovery. The purchase and installation of a new computing system will cost
500,000. The change will not incur any change to the net working capital. Assume a
tax rate of 40%.

calculate the book value of the current computer system

after the sales tax of 200,000 dollars. c. calculate the initial investment
related to the replacement project.

R// a. Book value. installed cost 325,000 x (0.2 + 0.32) = 169,000 325,000 - 169,000
value in pounds 156,000

(200,000 - 156,000) x 0.40 = 17,600

costo instalado 200,000 - impuesto 17,600 beneficio después del impuesto = 182,400

c. initial investment cost of installing the new equipment benefit from the sale of the equipment
existente. - impuesto sobre la venta. total beneficio después del impuesto Inversión
Initial.

500,000 200,000 17,600 182,400 317,600

P8-11 Initial investment, basic calculation

Cushing. Corporation is considering the purchase of a new machine, grader for

replace the current one. The current machine was acquired 3 years ago at an installed cost of
20,000 dollars; depreciated with MACRS over a recovery period of 5
years. The current machine is expected to have a useful life of 5 more years. The new machine
it costs 35,000 dollars and requires 5,000 in installation costs, it will depreciate with the
MACRS, through a recovery period of 5 years. the existing machine can
sell for 25,000 dollars without incurring any removal or cleaning costs. the
the company is subject to a tax rate of 40%. calculate the initial investment related to
the proposed purchase of a new machine.

R// Initial Investment basic calculation installed cost 20,000 accumulated depreciation.
20,000 x (0.2 + 0.32 + 0.19) = 14,200 20,000 - 14,200 = 5,800 book value tax
about the sale of the existing equipment. (25,000 - 5,800) x 0.4 = 7,680 Taxes

Initial investment. cost of installing new equipment cost of the new equipment. + cost of
total installation cost of new equipment.

35,000 5,000 40,000

benefits after tax. gain from the sale of existing equipment. - tax
Sale of the equipment. Total profit after tax. Initial investment.

25,000 7,680 17,320 22,680

P8-12 Initial investment at various selling prices. Edwards manufacturing company,

consider the replacement of one machine with another. The current machine was acquired 3
years at an installed cost of 10,000 dollars, the company depreciates the machine with the
MACRS with a 5-year recovery period, the new machine costs $24,000.
and requires installation costs of 2,000 dollars, the company is subject to a tax rate
of 40% in each of the following costs, calculate the initial investment for each one of them
the costs.

a. b. c. d.

EMC sells the current machine EMC sells the current machine EMC sells the machine
current EMC sells the current machine

$11,000, $7,000, $2,900, $1,500

R// sale at 11,000 dollars. Initial investment. installed cost 10,000 depreciation
accumulated. book value tax on the sale of existing equipment. Taxes 11,000
-

10,000 X 10,000 -

0.71 = 7,100 =

7,100 2,900
1,160

3,240
Initial investment. cost of installing new equipment cost of the new equipment. + cost of
total installation cost of new equipment.

24,000 2,000 26,000

benefit from the sale of existing equipment

Sale of the equipment. Total profit after tax. Initial investment.

11,000 3,240 7,760 18,240

R// sale at 7,000 dollars. Initial investment. installed cost 10,000 depreciation
accumulated. book value tax on the sale of existing equipment. Taxes 7,000 -

0.71

10,000 X 10,000 -

7,100

7,100 2,900

1,160

1,640

Initial investment. installation cost of new equipment cost of the new equipment. + cost of
total installation cost of new machine.

24,000 2,000 26,000

benefits after tax. profit from the sale of the existing machine. - tax
Sale of the machine. Total profit after tax. Initial investment.

7,000 1,640 5,360 20,640

Sale at 2,900 dollars. Initial investment. Installed cost 10,000 depreciation

accumulated. 10,000 X book value 10,000 sales tax on the machine
existing. Taxes 2,900 2,900 X 40% =

0.71

= 7,100 =

7,100 2,900

0
Initial investment. cost of installing a new machine cost of the new machine. + cost of
total installation cost of new machine.

24,000 2,000 26,000

benefits after tax. profit from the sale of the existing machine. - tax
Sale of the machine. Total profit after tax. Initial investment.

2,900 0 2,900 23,100

Sale at 1,500 dollars. Initial investment. Installed cost 10,000 depreciation.

accumulated. 10,000 X book value 10,000 sales tax on the existing machine.
Taxes 1,500 2,900 X 40% =

0.71 = 7,100 =

7,100 2,900

-560 tax credit

Initial investment. cost of installing a new machine cost of the new machine. + cost of
total installation cost for new machine.

24,000 2,000 26,000

benefits after tax. profit from the sale of the existing machine. - tax
Sale of the machine. Total profit after tax. Initial investment.

1,500 -560 2,060 23,940

Note: since the tax arose as a tax credit for the company, said
another way is a beneficial amount for the company, therefore it is added to the amount of the
sale of the existing machine, for the calculation of the initial investment

Depreciation a company evaluates the acquisition of an asset that costs 64,000 dollars and
requires 4,000 P8.13 dollars in installation costs, if the company depreciates assets with
the MACRS, through a period of

5-year recovery, determine the depreciation expenses for that year.

R//
Año 1 2 3 4 5 68,004 12 8160.48 68,003 12 8160.36 68,002 29 19720.58 68,001 32
21760.32

For year 5, the accumulated depreciation expense is 71,401.74

P8-21 Integration: determination of relevant cash flows Labor Company

consider the purchase of a new one
high-speed mill to replace the current mill, this was purchased 2 years ago
an installed cost of 60,000 dollars and is depreciated using MACRS over a period of
A 5-year recovery is expected to have an additional 5 years of useful life, the new mill.
It costs 105,000 dollars and requires installation costs of 5,000 dollars, it has a lifespan
a 5-year useful life and is depreciated using MACRS over a period of 5 years. Labor can
sell the current mill for 70,000 dollars without incurring any disposal costs or
cleaning, to support the increase in business generated by the purchase of the new
mill, the accounts receivable of the new mill, the accounts receivable increased
40,000 dólares los inventarios 30,000. y las cuentas por pagar 58,000. al termino de los 5
In years, it is expected that the current mill will have a value of zero, and the new mill will be sold.
to obtain 29,000 dollars after paying for the removal and cleaning costs and before
of tax. The company is subject to a tax rate of 40%. The following table shows
the earnings before depreciation, interest, and taxes for the 5 years calculated for the
new mill

new mill

current mill

año 1 2 3 4 5 43,000 43,000 43,000 43,000 43,000 26,000 24,000 22,000 20,000 18,000

R// a. Initial Investment. installed cost 60,000 accumulated depreciation. 60,000 X 0.52 =
book value 60,000 31,200 sales tax on the existing mill. Taxes
70,000 28,800 X 40% = 16,480

31,200 - 28,800 = 2,400

Initial investment. cost of installing a new mill. cost of the new mill. + cost of
total installation cost of new mill.

105,000 5,000 110,000

benefits after tax. profit from the sale of the existing mill. - tax
S/sale of the mill. total benefit after tax. Initial Investment.

70,000 16,480 53,520 56,480

b. Cálculos de los gtos. De depreciación año costo % deprec. Depreciación. Molino

nuevo. 1 110,000 20 22,000 2 110,000 32 35,200 3 110,000 19 20,900 4 110,000 12
13,200 5 110,000 12 13,200 6 110,000 5 5,500 Totales 100 110,000 Molino existente 3
60,000 19 11,400 4 60,000 12 7,200 5 60,000 12 7,200 6 60,000 5 3,000 Total 28,800

Calculation of the operating cash inflows for years 1, 2, 3, 4 New Machine

Earnings before depreciation, interest, and taxes.

5
43,000
Depreciation

6
43,000 22,000
Gain before interest and taxes.

43,000 35,200 21,000

Taxes 40%

43,000 20,900 7,800 8,400

Net operating income after tax

43,000 13,200 22,100 3,120 12,600

Depreciation

0 13,200 29,800 8,840 4,680 22,000

Operating cash inflow

5,500 29,800 11,920 13,260 35,200 34,600 39,880 34,160 31,080 31,080 2,200 20,900
13,200 13,200 5,500 17,880 17,880 -3,300 11,920 -2,200 -5,500
years Existing Machine
Earnings before depreciation, interest, and taxes.

1
26,000
Depreciation

2
24,000 11,400
Profit before interest and taxes.

3
22,000 7,200 14,600
Taxes 40%

4
20,000 7,200 16,800 5,840
Net operating income after tax

5
18,000 3,000 14,800 6,720 8,760
Depreciation

6
0 0 17,000 5,920 10,080 11,400
Operating cash inflow

0 18,000 6,800 8,880 7,200 20,160 17,280 16,080 13,200 10,800 0 7,200 3,000 0 0
10,200 10,800 0 7,200 0 0

Calculation of incremental operating cash inflows

new machine Machine Exists. relevant increments

years

123456
34,600 39,880 34,160 31,080 31,080 2,200

20,160 17,280 16,080 13,200 10,800 0

14,440 22,600 18,080 17,880 20,280 2,200

c. Terminal cash flow, at the end of year 5.

benefit after tax new mill

oppressed benefit from the sale of the new mill - Benefit after tax mill
new

29,000 9,400

Total benefit after tax new mill

19,600

Benefit after tax of the existing mill tax on the machine

total existing benefit after tax existing mill + change in capital of
net income. TERMINAL CASH FLOW

0 -1,200 1,200 12,000 30,400

d. relevant cash flow line.

20,280 30,400 14,440 22,600 18,080 17,880

50,680

012345

56,480
Alternative answers for the case in Chapter 8, Development of cash flows
relevant to the decision of renewal or replacement of the Clark Upholstery machine
Company. (Pages 349 and 350, book, principles of financial management, 11th edition.
by Lawrence J. Gitman

Alternative 1 (response by item)

1.a Inversión Inicial. costo instalado 30,000 depreciación acumulada. 0 valor en libro 0
sales tax on the existing machine. Taxes 20,000 0 X 40% = Investment
initial. renewal cost. renewal cost. + total installation cost total cost of
installation renewal new.

0.52

X0=0

=
0

8,000

90,000 0 90,000

benefits after tax

from the machine. total profit after tax. Initial Investment.

20,000 8,000 12,000 78,000

1.b
Calculations of depreciation expenses
year

Calculation of incremental operating cash inflows

Machine renewal

1 90,000 2 90,000 3 90,000 4 90,000 5 90,000 6 90,000 Totales

Existing machine

20 32 19 12 12 5 100

18,000 28,800 17,100 10,800 10,800 4,500 90,000

it is totally depreciated

Total

0
Calculation of operating cash inflows for years 1 2 3 New Machine
1,000,000 1,175,000 1,300,000 1,425,000 1,550,000 0

4
Income
Expenses (excluding Depreciation and tax)

801,500
Earnings before depreciation, interest, and taxes.

884,200 198,500
Depreciation

918,199 290,800 18,000

Profit before interest and taxes.
943,100 381,801 28,800 180,500
Taxes 40%

968,100 481,900 17,100 262,000 72,200

Net operating profit after tax

0 581,900 10,800 364,701 104,800 108,300

Depreciation

0 10,800 471,100 145,880 157,200 18,000

Operating cash inflow

4,500 571,100 188,440 218,821 28,800 126,300 186,000 235,921 293,460 353,460 1,800
17,100 10,800 10,800 4,500 282,660 342,660 -2,700 228,440 -1,800 -4,500

3 years Existing machine

Profit before depreciation, interest, and taxes.

1
0
Depreciation

2
00
Earnings before interest and taxes.

4
000
Taxes 40%

5
0000
Net operating profit after tax

6
0 0 0 0 100,000
Depreciation

0 0 0 0 150,000 0
Operating cash inflow

0 0 0 200,000 0 100,000 150,000 200,000 250,000 320,000 0 0 0 0 0 250,000 320,000 0 0

00

Calculation of incremental operating cash inflows

new machine Machine Exists. relevant increments

years
123456

126,300 186,000 235,921 293,460 353,460 1,800

100,000 150,000 200,000 250,000 320,000 0

26,300 36,000 35,921 43,460 33,460 1,800

1.c

Terminal cash flow at the end of year 5.

profit after tax new machine

benefit from the sale of the refurbished machine - Profit after tax
renewed machine

8,000 1,400

Total benefit after tax from renewal

6,600

Profit after tax from the existing machine tax on the machine
total existing benefit after tax existing machine + change in capital of
net work. TERMINAL CASH FLOW

20,000 8,000 12,000 15,000 9,600

relevant cash flow line.
33,460 9,600 26,300 36,000 35,921 43,460

43,060

012345

78,000

Alternative 2 (response by item)

2.a Initial Investment. installed cost 30,000 accumulated depreciation 0 book value 0
Sales tax on the existing machine. Taxes 20,000 0 X 40% =

0.95

X0=0

8,000
initial investment
total cost of installation renewal new.

100,000 10,000 110,000

benefits after tax

from the machine. total benefit after tax. Initial Investment.

20,000 8,000 12,000 98,000

2.b
Calculations of depreciation expenses
year

Calculation of incremental operating cash inflows

Machine renewal

110,000
Existing machine

20 32 19 12 12 5 100

22,000 35,200 20,900 13,200 13,200 5,500 110,000

it is completely depreciated now

Total

0
Calculation of operating cash inflows years 1 2 3 New Machine
1,000,000 1,175,000 1,300,000 1,425,000 1,550,000 0

4
Income
Expenses (excluding Depreciation and Tax)

764,500
Profit before depreciation, interest, and taxes.

839,800
Depreciation

914,900 335,200 22,000

Profit before interest and taxes.
989,900 385,100 35,200 213,500
Taxes 40%

998,900 435,100 20,900 300,000 85,400

Net operating profit after tax

0 551,100 13,200 364,200 120,000 128,100

Depreciation

0 13,200 421,900 145,680 180,000 22,000

Operating cash inflow

5,500 537,900 168,760 218,520 35,200 150,100 215,200 239,420 266,340 335,940 2,200
20,900 13,200 13,200 5,500 253,140 322,740 -3,300 215,160 -2,200 -5,500

3 years Existing machine

Profit before depreciation, interest, and taxes.

1
0
Depreciation

2
00
Profit before interest and taxes.

4
000
Taxes 40%

5
0000
Net operating profit after tax

6
0 0 0 0 100,000
Depreciation

0 0 0 0 150,000 0
Operating cash inflow

0 0 0 200,000 0 100,000 150,000 200,000 250,000 320,000 0 0 0 0 0 250,000 320,000 0 0

00

Calculation of incremental operating cash inflows

new machine Machine Exists. relevant increments

years
123456

150,100 215,200 239,420 266,340 335,940 2,200

100,000 150,000 200,000 250,000 320,000 0

50,100 65,200 39,420 16,340 15,940 2,200

2.c

Terminal cash flow, at the end of year 5.

benefit after tax new machine

oppressed benefit from the sale of the new machine - Benefit after tax
new machine

25,000 7,800

Total profit after tax of the new machine

17,200

Benefit after tax of the existing machine tax on the machine

total existing after-tax benefit existing machine + change in capital of
net work. TERMINAL CASH FLOW

20,000 8,000 12,000 22,000 27,200

2.d
15,940 27,200 50,100 65,200 39,420 16,340

relevant cash flow line.

43,140

012345

98,000

In my own opinion, the renewal option (alternative 1) seems better.

Why? By observing the cash flow provided by the 2 alternatives, I can
determine that the first alternative is better due to its fluency. The other major point that
Option 1 is the initial investment as its cost is lower.
In chapter 8 of the book Principles of Financial Management by Lawrence J.
Gitman resolver from pages 343 and 344 the following exercises:
P8-6, P8-7, P8-8, P8-9, P8-10, P8-11, P8-12, P-13

Year
recovery percentage in: |
|$ | %|$ |$ | |
1 950000 20% 760000 5 years |
2 950,000 32% 494000 | |
3 | 950000 19% | 674500 | |
4 | | 12% | 0 |0 | |
5 | 12% | 0 0 | |
6 | 5% 0 | |
Totals | 100% 674500 | | |
Value in the book is 950,000 - 674,500 = 275,500
Year
recovery percentage in: |
|$| %|$|$ | |
1 | 40000| 33% | 13200| 26800| 3 años |
2 | 45% 0 | |
3 | | 15% | 0 0 | |
4 | | 7% | 0 0 | |
Totals | 100% | |
Value in the book is 40,000 - 26,800 = 13,200
Año
recovery percentage in: |
|$| %|$|$ | |
1 | 96000| 20% | 19200| 76800| 5 años |
2 | 96000| 32% | 30720| 49920| |
3 96000 |
4 | 96000| 12% | 11520| 79680| |
5 | 12% | 0 0 | |
6 | 5% | 0 0 | |
Totals | 100% 79680 | |
Value in the book is 96,000 - 79,680 = 16,320
Año
recovery percentage in: |
|$ | %|$ |$ | |
1 350000 20% 5 years |
2 | 32% 0 | |
3 | 19% 0 | |
4 | | 12% | 0 |0 | |
5 | 12% | 0 |0 | |
6 | 5% 0 | |
Totals | 100% 70000 | |
Value in the book is 350,000 - 280,000 = 70,000
Año
percentage of recovery in: |
|$| %|$|$ | |
 1 1500000 14% 1290000 7 years |
2 1,500,000 25% | 585000 | |
3 1500000 18% 855000 | |
4 1500000 12% 1035000 | |
5 1,500,000 9% 1170000 | |
6 | | 9% | 0 0 | |
7 | 9% 0 | |
8 | | 4% | 0 |0 | |
Totals | 100% | 1170000 | | |
Value in the book is 1,500,000 – 1,170,000 = 330,000
Year
recovery percentage in: |
|$| %|$|$ | |
1 | 80000| 20% | 16000| 64000| 5 años |
2 | 80000| 32% | 25600| 41600| |
3 | 80000| 19% | 15200| 56800| |
4 | | 12% | 0 0 | |
5 | 12% 0 | |
6 | 5% 0 | |
Totals | 100% | |
Value in the book is 80,000–56,800 = 23,200

Price of the Day Current Price Taxes

Capital Gain Selling Price |
PD
80000 | 13600| 66400| 66400| 53120| 33600| 100000 |
| | | | | | |
Book Value | is equal to PD - PA | 13600| | |
| | | | | | |
Current Price is equal to PD * ( Percentages During the Years of
USO) | 66400|
| $50,000.00 * (0.20 + 0.32 + 0.19 + 0.12) = $5,000.00 |
| | | | | | |
Taxes is equal to (0.40*VC)+(0.40*PA) | 53120
Responsibility |
| | | | | Fiscal
Capital Gain is equal to PV - VC | 33600 53120

Price of the Day Current Price Taxes

Capital Gain Selling Price |
PD
56000 | 9520 | 46480| 46480| 37184| 9520 | 56000|
| | | | | | |
Book Value | is equal to PD - PA | 9520 | | |
| | | | | | |
Current Price is equal to PD * ( PERCENTAGES DURING THE YEARS OF
USO) | 46480|
| $50,000.00 * (0.20 + 0.32 + 0.19 + 0.12) = $5,000.00 |
| | | | | | |
 Taxes is equal to (0.40*VC)+(0.40*PA) | 37184
Responsibility |
| | | | | Fiscal
Capital Gain PV - VC is equal | 9520 37184

Price of the Day Current Price Taxes

Capital Gain Selling Price |
PD
23200 | 3944 | 19256| 19256| 15404,8 | 3944 | 23200|
| | | | | | |
Book Value | is equal to PD - PA | 3944 | | |
| | | | | | |
Current Price is equal to PD * ( PERCENTAGES DURING THE YEARS OF
USO) | 19256|
| $50,000.00 * (0.20+0.32+0.19+0.12) = $5,000.00 |
| | | | | | |
Taxes is equal to (0.40*VC)+(0.40*PA) | 15404.8 |
Responsibility |
| | | | | Fiscal
Capital Gain it is equal to PV - VC | 3944 15405

Price of the Day Current Price Taxes

Capital Gain Selling Price |
PD
15000 | 2550 | 12450| 12450| 9960 | 2550 | 15000|
| | | | | | |
Book Value | is equal to PD - PA | 2550 | | |
| | | | | | |
Current Price is equal to PD * ( PERCENTAGES DURING THE YEARS OF
USO) | 12450|
| $50,000.00 * (0.20+0.32+0.19+0.12) = $5,000.00 |
| | | | | | |
Taxes is equal to (0.40*VC) + (0.40*PA) | 9960
Responsibility |
| | | | | Fiscal
Capital Gain it is equal to PV - VC | 2550 9960

Price of the Day Current Price Taxes

Capital Gains Selling Price |
PD
200000 | 34000| 166000 | 166000 154400 | 54000| 220000
|
| | | | | | |
Value of the Book is equal to PD - PA | 34000 | |
| | | | | | |
Current Price is equal to PD * ( PERCENTAGES DURING THE YEARS OF
USO) | 166000 |
| $50,000.00 * (0.20+0.32+0.19+0.12) = $5,000.00 |
| | | | | | |
 Taxes is equal to (0.40*VC)+(0.40*PV) | 154400 |
Responsibility |
| | | | | Fiscal
Capital Gain it is equal to PV - VC | | 54000| 154400
|

Price of the Day Current Price Taxes

Capital Gain Selling Price |
PD
200000 | 34000| 166000 166,000 126400 -16000 |
150000
| | | | | | |
Value of the Book is equal to PD - PA | 34000| | |
| | | | | | |
Current Price is equal to PD * ( PERCENTAGES DURING THE YEARS OF
USO) | 166000 |
| $50,000.00 * (0.20+0.32+0.19+0.12) = $5,000.00 |
| | | | | | |
Taxes is equal to (0.40*VC)+(0.40*PV) | 126400 |
Responsibility |
| | | | | Fiscal
Capital Gain | it is equal PV - VC | -16000 | |
126400

Price of the Day Book Value Taxes

Capital Gain Selling Price |
PD
200,000 | 34000| 166000 166000 104800 -70000 96000
|
| | | | | | |
Book Value is equal to PD - PA | 34000 | |
| | | | | | |
Current Price is equal to PD * ( PERCENTAGES DURING THE YEARS OF
USO) | 166000 |
| $50,000.00 * (0.20+0.32+0.19+0.12) = $5,000.00 |
| | | | | | |
Taxes is equal to (0.40*VC) + (0.40*PV) | 104800 |
Responsibility |
| | | | | Fiscal
Capital Gain it is equal to PV - VC | -70000 | |
104800

Daily Price Current Price Taxes

Capital Gain Selling Price |
PD
200000 | 34000| 166000 166000 | 98400| -86000 80000
| | | | | | |
Book Value is equal to PD - PA | 34000| | |
| | | | | | |
 Current Price is equal to PD * ( PERCENTAGES DURING THE YEARS OF
USO) | 166000 |
| $50,000.00 * (0.20+0.32+0.19+0.12) = $5,000.00 |
| | | | | | |
Taxes is equal to (0.40*VC) + (0.40*PV) | 98400
Responsibility |
| | | | | Fiscal
Capital Gain It is equal to PV - VC | -86000 | 98400
|

Daily Price Current Price Taxes

Capital Gain Selling Price |
PD
325000 156000 169000 169000 147600 | 31000|
200000
| | | | | | |
Book Value is equal to PD - PA 156000 | | |
| | | | | | |
Current Price is equal to PD * ( Percentages During the Years of
USO) | 169000 |
| $50,000.00 * (0.20+0.32+0.19+0.12) = $5,000.00 |
| | | | | | |
Taxes is equal to (.40*VC) + (0.40*PV) | 147600 |
Responsibility |
| | | | | Fiscal
Capital Gain is equal to PV - VC | 31000 147600
|
Initial investment related to the project is 31,000

Price of the Day Current Price Taxes

Capital Gain Selling Price |
PD
20000 | 5800 | 14200| 14200| 15680| 10800| 25000|
| | | | | | |
Book Value | is equal to PD - PA | 5800 | | |
| | | | | | |
Current Price is equal to PD * ( PERCENTAGES DURING THE YEARS OF
USO) | 14200|
| $50,000.00 * (0.20+0.32+0.19+0.12) = $5,000.00 |
| | | | | | |
Taxes (0.40*VC)+(0.40*PV) is equal to | | 15680|
Responsibility |
| | | | | Fiscal
Capital Gain is equal to PV - VC | 10800 15680
The initial investment related to the purchase is: 10,800

Daily Price Current Price Taxes

Capital Gain Selling Price |
PD
10000 | 2900 | 7100 | 7100 | 7240 | 3900 | 11000|
 | | | | | | |
Book Value | is equal to PD - PA | 2900 | | |
| | | | | | |
Current Price is equal to PD * ( percentages during the years of
USE) | 7100 |
| $50,000.00 * (0.20 + 0.32 + 0.19 + 0.12) = $5,000.00 |
| | | | | | |
Taxes is equal to (.40*VC)+(0.40*PV) | 7240
Responsibility |
| | | | | Fiscal
Capital Gain it is equal to PV - VC | 3900 7240
Initial investment related to the purchase is: 3,900
Price of the Day Current Price Taxes
Capital Gain Selling Price |
PD
10000 | 2900 | 7100 | 7100 | 5640 | -100 | 7000 |
| | | | | | |
Book Value | is equal to PD - PA | 2900 | | |
| | | | | | |
Current Price
USO) | 7100 |
| $50,000.00 * (0.20+0.32+0.19+0.12) = $5,000.00 |
| | | | | | |
Taxes is equal to (0.40*VC)+(0.40*PV) | | 5640 |
Responsibility |
| | | | | Fiscal
Capital Gain is equal to PV - VC | -100 | 5640 |
The initial investment related to the purchase is: -100
Day Price Current Price Taxes
Capital Gain Selling Price |
PD
10000 | 2900 | 7100 | 7100 | 4000 | -4200 | 2900 |
| | | | | | |
Book Value | is equal to PD - PA | 2900 | | |
| | | | | | |
Current Price is equal to PD * ( PERCENTAGES DURING THE YEARS OF
USO) | 7100 |
| $50,000.00 * (0.20 + 0.32 + 0.19 + 0.12) = $5,000.00 |
| | | | | | |
Taxes is equal to (.40*VC)+(0.40*PV) | | 4000 |
Responsibility |
| | | | | Fiscal
Capital Gain it is equal to PV - VC | -4200 4000
The initial investment related to the purchase is: -4200
Price of the Day Current Price Taxes
Capital Gain Selling Price |
PD | VL | PA | VC | IMP | GC | PV |
10000 | 2900 | 7100 | 7100 | 3440 | -5600 | 1500 |
| | | | | | |
Book Value is equal to PD - PA | |
 | | | | | | |
Current Price is equal to PD * ( PERCENTAGES DURING THE YEARS OF
USO) | 7100 |
| $50,000.00 * (0.20+0.32+0.19+0.12) = $5,000.00 |
| | | | | | |
Taxes is equal to (0.40*VC)+(0.40*PV) | 3440
Responsibility |
| | | | | Fiscal
Capital Gain It is equal to PV - VC | -5600 3440
Initial investment related to the purchase is: -5600

Año
percentage of recovery in: |
|$| %|$|$ | |
1 | 68000| 20% | 13600| 54400| 5 años |
2 | 68000| 32% | 21760| 35360| |
3 | 68000| 19% | 12920| 48280| |
4 | 68000| 12% | 8160 | 56440| |
5 | 68000| 12% | 8160 | 64600| |
6 | 68000| 5% | 3400 | 68000| |
Totals | 100% 68000 | |