After-Tax Analysis - Worked Examples

Example 1 — Revenue PHP 1.5M, cash expenses PHP 700k, depreciation PHP 300k. Find taxable income.

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Example 2 — Using a stated 25% tax rate for Example 1, find modeled tax.

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Example 3 — Find after-tax operating cash flow for Examples 1–2.

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Example 4 — Verify Example 3 using the depreciation-shield form.

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Example 5 — Find the depreciation tax shield for PHP 400k depreciation at a stated 30% tax rate.

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Example 6 — Sale price PHP 900k, book value PHP 700k, stated tax rate 25%. Find generic after-tax sale proceeds.

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Example 7 — Sale price PHP 500k, book value PHP 700k, stated 25% rate, and the problem explicitly says the full loss tax benefit is immediately usable.

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Example 8 — Why should Example 7 not be generalized automatically to every negative taxable income?

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Example 9 — Straight-line depreciation basis PHP 4M, salvage PHP 400k, life 6 years. Find annual depreciation.

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Example 10 — Compare two depreciation methods with the same total depreciable basis but one is accelerated. Why can timing matter after tax?

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Example 11 — A project analyst hard-codes a 25% tax rate because a previous example used 25%. What is wrong?

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Example 12 — A cash-flow spreadsheet subtracts depreciation in expenses and then subtracts tax computed after depreciation. Identify the error.

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Example 13 — Full-life after-tax NPV: time-zero investment PHP 2.0M, after-tax operating cash flow PHP 600k/year for 4 years, after-tax terminal sale proceeds PHP 300k at year 4, after-tax MARR 10%.

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