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    • CommentAuthorabril
    • CommentTimeMay 1st 2007
     
    Jarvis Company, a calendar year company, purcahsed a new machine for 280,000 on January 1. Depreciation for tax purposes will be P35,000 annually for eight years (tax = 35%). The accounting (book value) rate of return (ARR) is expected to be 15% on the initial increase in required investment. On the assumptions of a uniform cash flow, this is expected to provide annual cash flow from operations, net of income tax, of?

    help me!!!!!!!! reply to this message or email me at aprilles0ler@hotmail.com
    • CommentAuthorabril
    • CommentTimeMay 1st 2007
     
    waaaahhhhhh!!!!!! help me!!!!!
    • CommentAuthorAbusamak
    • CommentTimeMay 1st 2007
     
    hello,
    their are missed information such as :
    1- revenue or initial ivestement to calculate OCF
    2- changes in current assets and liabiletes
    3- income befor tax
    Thankful People: abril
    • CommentAuthorabril
    • CommentTimeMay 1st 2007
     
    no no no abumasak... that kind of question is a puzzle!
    i believe the initial investment is the cost of the machine or you still have to use algebra to find it, but im unsure.
    income before tax is computed upwards.
    income before tax (100%)
    tax (35%)
    net income (65%) __________

    the thing is, that's all i know! i dont know where to begin..

    somebody help me...
    • CommentAuthorabril
    • CommentTimeMay 1st 2007
     
    thank you fot trying to help abumasak :) i reallt appreciate your effort. thank you very much :)
    • CommentAuthorlouiys
    • CommentTimeJun 21st 2007
     



 

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