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    sumaira85
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    1. A company had an income before tax of $47.69 million at a tax rate of 35% and an increased income of $52.5 million at a tax rate of 40%. After calculating taxes, the net income was $36.75 million. 2. A loan of $15 million was taken at 20% interest per year over 5 years. The interest payment was $3 million each year and the principal reduced by $3 million each year. The savings increased each year as the principal and interest payments decreased over the 5 years.

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    1. A company had an income before tax of $47.69 million at a tax rate of 35% and an increased income of $52.5 million at a tax rate of 40%. After calculating taxes, the net income was $36.75 million. 2. A loan of $15 million was taken at 20% interest per year over 5 years. The interest payment was $3 million each year and the principal reduced by $3 million each year. The savings increased each year as the principal and interest payments decreased over the 5 years.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
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    18 views3 pages

    Book 1

    Uploaded by

    sumaira85
    1. A company had an income before tax of $47.69 million at a tax rate of 35% and an increased income of $52.5 million at a tax rate of 40%. After calculating taxes, the net income was $36.75 million. 2. A loan of $15 million was taken at 20% interest per year over 5 years. The interest payment was $3 million each year and the principal reduced by $3 million each year. The savings increased each year as the principal and interest payments decreased over the 5 years.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 3

    1

    income before tax @35%

    47690000

    income increase @40%

    52500000

    47690000 @35%
    52500000@40%

    16691500
    21000000

    21000000-16691500=4308500

    new machinery cost


    net income
    dep

    15000000
    52500000
    3000000
    49500000

    49500000@35%=17325000

    21000000-17325000=3675000
    2
    principle
    year1
    2
    3
    4
    5

    15000000 @20 %
    12000000 @20%
    9000000 @20 %
    6000000 @ 20%
    3000000 @20 %

    interest
    3000000
    3000000
    3000000
    3000000
    3000000

    3000000
    2400000
    1800000
    1200000
    600000

    Assignment#1
    SUMAIRA NOOR
    L1F10MBAM0222

    08500
    useful life 5 years

    saving
    4725000
    4515000
    4305000
    4095000
    3885000

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