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Title: Capital Budget Mini-Case
Essay Details
| Subject: |
Business |
| Author: |
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| Date: |
April 12, 1996 |
| Level: |
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| Grade: |
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| Length: |
8 / 2020 |
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Essay text:
Corporation B:
1) Revenues = 150K in year one, increasing by 8% each year
2) Expenses = 60K in year one, increasing by 10% each year
3) Depreciation Expense = 10K each year
4) Tax Rate = 25%
Revenue increases by 8% each year
Expense increases by 10%
Year Revenue Expense Depreciation expense= Profit before tax= Revenue-Expense-Depreciation Tax @ Net Profit
25%
1 150,000 60,000 10,000 80,000 20,000 60,000
2 162,000 66,000 10,000 86,000 21,500 64,500
3 174,960 72,600 10,000 92,360 23,090 69,270
4 188,957 79,860 10,000 99,097 24,774 74,323
5 204,074 87,846 10,000 106,228 26,557 79,671
d... Showed first 250 characters
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Corporation B:
1) Revenues = 150K in year one, increasing by 8% each year
2) Expenses = 60K in year one, increasing by 10% each year
3) Depreciation Expense = 10K each year
4) Tax Rate = 25%
Revenue increases by 8% each year
Expense increases by 10%
Year Revenue Expense Depreciation expense= Profit before tax= Revenue-Expense-Depreciation Tax @ Net Profit
25%
1 150,000 60,000 10,000 80,000 20,000 60,000
2 162,000 66,000 10,000 86,000 21,500 64,500
3 174,960 72,600 10,000 92,360 23,090 69,270
4 188,957 79,860 10,000 99,097 24,774 74,323
5 204,074 87,846 10,000 106,228 26,557 79,671
d... Showed next 250 characters
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