First, bid prices should differ to the extent that expected after-tax cash flows
are different and the firms are applying the same discount rate.
The corresponding after-tax cash flows
are presented in Table 2.
Appropriate for both undergraduate and graduate courses, this textbook introduces the process of forecasting after-tax cash flows
from real estate investment proposals, credit instruments for borrowing money, and the tax implications of owning property.
One is the present value method, which compares the present values of the after-tax cash flows
of the two alternatives.
Potential changes in the tax system and tax rates can have a significant impact on the after-tax cash flows
and value of a deal.
5% per annum to realize the same after-tax cash flows
2) The WACC method estimates a project's value by discounting its debt-free after-tax cash flows
using a constant weighted average cost of capital ([R.
76% of face amount, is similarly calculated by discounting the after-tax cash flows
using after-tax forward rates.
The report indicates after-tax profits in 2003 of $28 million and after-tax cash flows
of $36 million with development of the Camden deposit, but excluding development of the recently explored Little Benton deposit.
Cost to the State summary--The simulations performed in this study suggest that fair rental, capital reimbursement can both provide positive after-tax cash flows
and be less costly to the State (in discounted present value form) than traditional capital reimbursement.
It examines the following: * the annual projected after-tax cash flows
the foundry will generate; * the cash flows discounted at an appropriate rate of return, taking into account the relative risk of not realizing the projected cash flow and the time value of encumbered funds; * the estimated residual value of the asset at the end of its remaining useful life; * the residual value converted to its present value equivalent; * the present value of the after-tax cash flow
combined with the present value of the determined residual.
These after-tax cash flows
are discounted to the present value using an appropriate interest rate, and then summed to generate the net present value of the program.