I am running a Sole owner solar farm model. When looking at the Cash Flow I notice after year 7 my After Tax returns shows a negative return. This seems incorrect as the input variable for Federal income tax rate does not equal Pre tax return multiplied by the fed tax rate. What am I missing here?
For example on the Cash flow:
Fed income tax rate = 21%
Total Pre tax return = $158,180
Federal tax benefit (liability) = $136,786
However, $158,180 x .21 = $33,217.8
Thank you,