Look at these and figure out what the cash flows from assets are for each car: P

Question

Look at these and figure out what the cash flows from assets are for each car: Panamera S: Panamera S Hybrid: Revenue: $240,000,000 Revenue: $240,000,000 Fixed Costs: $18,000,000 Fixed Costs: $18,000,000 Initial Cost: $91,350,000 Initial Cost: $96,150,000 Tax: $31,972,500 Tax: $33,652,500 Depreciation: $15,225,000 Depreciation: $16,025,000 Net Income: Panamera S: Panamera S Hybrid: $83,452,500 $76,172,500 Operating Cash Flows: Panamera S: Panamera S Hybrid: $98,677,500 $92,197,500 Cash Flows From Assets: Panamera S: Panamera S Hybrid: $

Explanation / Answer

Due to lack of information it is assumed that this is first year of operation.. as per income tax, Rate of Depreciation is 15% on Car Therefore Cashflow from Assets= Value of assets Purchased this year Panamera S= 15225000 / 15% = (101500000) Panamera S Hybrid = 16025000 / 15%= (106833333.33)

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