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You are finalizing a bank loan for $180,000 for your small business and the closing fees payable to the bank are 2.1% of the loan. After paying the fees, what will be the net amount of funds from the loan available to your business?

          You are finalizing a bank loan for $180,000 for your small business and the closing fees payable to the bank are 2.1% of the loan. After paying the fees, what will be the net amount of funds from the loan available to your business?
        
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Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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You are finalizing a bank loan for $180,000 for your small business and the closing fees payable to the bank are 2.1% of the loan. After paying the fees, what will be the net amount of funds from the loan available to your business?
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Transcript

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00:02 Create the annual operating cash flow, the annual operating cash flow for the project.
00:35 We need to subtract the cost depreciation and taxes from the annual sales.
00:42 So, annual operating cash flow equals to annual operating cash flow, sales minus cost minus depreciation minus taxes.
01:09 So given the sales is dollar eight lakh cost is dollar seven lakh depreciation is dollar fifty thousand and the tax rate is 2%.
01:24 Let's calculate the tax amount by multiplying the taxable income that is sales minus cost minus depreciation by the tax rate.
01:34 So tax equals to taxable in income into the tax rate.
01:50 Taxable income equals to sales minus cost depreciation...
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