I Have been working on this accounting question for hours and have tried everything.
I know how to usually do this, but there are no example questions that have you factor in tax, and especially what you do with the depreciation and future and present values.

heres the data:

Erie Corp. is considering a project that would require an initial investment of 0,560 and would have a useful life of 6 years. The annual cash receipts would be 5,310 and the annual cash expenses would be ,640. The salvage value of the assets used in the project would be ,780. The company’s tax rate is 30%. For tax purposes, the entire initial investment without any reduction for salvage value will be depreciated over 5 years. The company uses a discount rate of 10% and the factors relating to that rate are presented here:

Number of yearsFactor
Present value of 6 years0.564
Present value of an annuity of years3.791
Present value of an annuity of years4.355

Here is the actual Question:
What is the net present value of this project? (NOTE: DO CONSIDER THE EFFECTS OF TAX)

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What I tried to do but is wrong is:

Present Value of Inflows – Present Value of Outflows so

[(125310 - 55640) = 69670 per year * 4.355 (factor of 6 years) * .7 (30% tax rate) ] = 212388.995

+

[32780 (in 6 years so multiply by .564) * .7 (30% tax rate)] = 12941.544

-

Initial investment NPV 200560

=
NPV = 24770.53 but this is wrong. I think I am handling the tax rate and the depreciation wrong.
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Thank you so much to whoever can help!!!
That did not work. years 1-5 made sense, but Why isnt the salvage value in the 6th year used? wouldnt that you find the present value of the salvage value?

1. Long-term debt would likely be used for which of the following?

A. purchasing machinery
B. paying salaries
C. acquisition of inventory
D. paying premiums for insurance

2. On January 1, 2008 the Dakota Company borrowed 2,000 cash from the First Trust Bank by issuing a five-year 8 % term note. The principal and interest are repaid by making annual payments beginning on December 31, 2008. The annual payment on the loan based on the present value of annuity factor would be ,575.

How does the amortization of the principal balance on an installment note payable affect the amount of interest expense recorded each succeeding year?

A. Has no effect on interest expense each year
B. Increase the amount of interest expense each year
C. Reduces the amount of interest expense each year
D. Either A or C, depending on market conditions

3. Curtis Company issued bonds with a 0,000 face value and a 6% stated rate of interest on January 1, 2008. The bonds carried a 5-year term and sold for 95. Interest is payable on December 31 of each year.

The carrying value of the bond liability (i.e., face value plus or minus the premium or discount) on the December 31, 2010 balance sheet was:

A. 5,000.
B. 0,000.
C. 2,000.
D. 5,000.

Can anyone help me figure out how to work out FV? I just don’t get it.

35.Benaflek Co. purchased some equipment 3 years ago. The company’s required rate of return is 12%, and the net present value of the project was $(450). Annual cost savings were: ,000 for year 1; ,000 for year 2; and ,000 for year 3. The amount of the initial investment was
Present ValuePV of an Annuity
Year of 1 at 12% of 1 at 12%
1.893.893
2.7971.690
3.7122.402

A),239.
B),158.
C),058.
D),339.

36.Fehr Company is considering two capital investment proposals. Estimates regarding each project are provided below:
Project BlueProject Gray
Initial investment0,0000,000
Annual net income20,00042,000
Net annual cash inflow100,000142,000
Estimated useful life5 years6 years
Salvage value00

The company requires a 10% rate of return on all new investments.
Present Value of an Annuity of 1
Periods 9% 10% 11% 12%
53.8903.7913.6963.605
64.4864.3554.2314.111

The net present value for Project Gray is
A)8,410.
B)2,912.
C)0,000.
D),410.

37.Fehr Company is considering two capital investment proposals. Estimates regarding each project are provided below:
Project BlueProject Gray
Initial investment0,0000,000
Annual net income20,00042,000
Net annual cash inflow100,000142,000
Estimated useful life5 years6 years
Salvage value00

The company requires a 10% rate of return on all new investments.
Present Value of an Annuity of 1
Periods 9% 10% 11% 12%
53.8903.7913.6963.605
64.4864.3554.2314.111

The internal rate of return for Project Gray is approximately
A)10%.
B)11%.
C)12%.
D)9%.

38.Use the following table,
Present Value of an Annuity of 1
Period 8% 9% 10%
1.926.917.909
21.7831.7591.736
32.5772.5312.487

A company has a minimum required rate of return of 10% and is considering investing in a project that requires an investment of ,000 and is expected to generate cash inflows of ,000 at the end of each year for three years. The present value of future cash inflows for this project is
A),000.
B)4,454.
C)4,898.
D),454.

39.Use the following table,
Present Value of an Annuity of 1
Period 8% 9% 10%
1.926.917.909
21.7831.7591.736
32.5772.5312.487

A company has a minimum required rate of return of 9% and is considering investing in a project that costs 5,000 and is expected to generate cash inflows of ,000 at the end of each year for three years. The net present value of this project is
A)7,170.
B),000.
C),718.
D),170.

40.Use the following table,
Present Value of an Annuity of 1
Period 8% 9% 10%
1.926.917.909
21.7831.7591.736
32.5772.5312.487

A company has a minimum required rate of return of 8% and is considering investing in a project that costs ,337 and is expected to generate cash inflows of ,000 each year for three years. The approximate internal rate of return on this project is
A)8%.
B)9%.
C)10%.
D)less than the required 8%.