Engineering Economics2D
After-Tax Economic Analysis - Theory & Concepts - After Tax
Performing economic evaluations considering the impact of corporate taxes, effective tax rates, and After-Tax Cash Flow (ATCF).
Open the complete lessonAfter-Tax Cash Flow Visualizer
Gross Annual Income50,000 $
Operating Expenses15,000 $
Annual Depreciation10,000 $
Corporate Tax Rate21 %
Tax Shield Analysis
BTCF:$35,000
Taxes Paid:-$5,250
Final ATCF:$29,750
The Depreciation ShieldBy claiming $10,000 in non-cash depreciation, the company reduced its tax bill by $2,100.
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