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please help in solving

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  • 1.  please help in solving

    Posted 8 days ago


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    Syed Yousuf Jamal
    None
    Alexandria
    Egypt
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  • 2.  RE: please help in solving
    Best Answer

    Posted 7 days ago
    The problem asks for the after-tax incremental cash flow in USD. Therefore you need to convert revenue figures from KRW to USD. In year 1 Tot Revenues amount to:
    100,000 KRW divided by 1250 KRW/USD multiplied by 200,000 units sold = 16 Mio USD.
    The 0,8 Mio USD Cash Taxes in year 1 derives from 2Mio Tax Profits before  Tax multiplied by 40% tax rate.
    In my view showing all these calculations in an essay can be the real tough problem. :)

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    Giulio La Bua
    Director/Manager
    OPENTEXT
    Munich
    Germany
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  • 3.  RE: please help in solving

    Posted 7 days ago
    Thank you very much.

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    Yousuf Syed
    Accountant
    Jeddah
    Saudi Arabia
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  • 4.  RE: please help in solving

    Posted 6 days ago
    In year 1 why depreciation tax shield not considered

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    Syed Yousuf Jamal
    None
    Alexandria
    Egypt
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