You are on page 1of 1

Annual cash flow before taxes P 53,600

Less: Depreciation 26,666

Net income before taxes 26,934

Less: Income taxes 13,467

Net Income after taxes 13,467

Add: Depreciation 26,666

Annual cash flow after taxes P 40,133

2. The company should not purchase the computer because it can’t reduce the cost as it is indicated by a
negative present value.

You might also like