7-34. Refer to Problem 6-77. The alternatives all havea MACRS (GDS) property class of three years. Ifthe effective income tax rate is 25% and the after-taxMARR = 11.25% per year, which alternative shouldbe recommended? Is this the same recommendation youmade when the alternatives were analyzed on a before-taxbasis? (7.10)

Answered: Image /qna-images/answer/02539883-cf09-4910-b0b0-948251f888cc.jpg

Answered: 7-34. Refer to Problem 6-77. The…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A person considers an inversion that saves 100,000 a year. annual taxes equal to 2% of its value per year annual maintenance expenses equivalent to 3% of its value lifespan of 5 years, no salvage value WIth a Depreciation using the straight line method what is the maximum you should pay for this investment? pays interest contributions 40% MARR9% a person wants to save for the university they will be attending in 5 years. Today annual tuition costs 20,000. If you can make investments that yield 8% and the inflation rate of 5%, how much should you save per year for the next 4 years to pay for a tuition year that increases according to general inflation?
Godo
A rural community/company is considering an investment in a cottage industry for which the net cash flows have been estimated as follows: i) What is the NPV if the discount rate is 10%? ii) Using discount rates of 10% and 14% calculate the IRR? iii) Is this project acceptable?
Song's Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected. WACC: 10.25% Year 0 1 2 3 4 5 Cash flows ($1,000) $200 $300 $400 $300 $500
Not use ai please
Please answer le lo please answer fast please arjent help please ASAP pls
D 0 P 2,020 0 2,000 0 8 700 1,560 7,413 1 2 8.840 1 P22,533 e with the = should be cost of only ROR on additional investment on D Solution Untreated Pole Annual costs: Depreciation - Machine D is economical than Machine B, choose Machine D. teample y (7-4) An untreated electric wooden pole that will last 10 years under certain soil condition costs P1,200. If a treated pole will last for 20 years, what is the maximum justifiable amount that can be paid for the treated pole, if the maximum return on investment is 12%? Consider annual taxes and insurance amount to be 1% of first cost. (ME Board Problem - Oct. 1988) P1,200 F/A, 12%, 10 -P13,695)(100) P52,000-P30,000 = 18.47> 17% P1,200 17.5487 -= P 68.38
A company is going to buy a new machine for manufacturing its products. Three machines are available. Data is as follows: Money is worth 17% before taxes to the company. Which machine should be chosen? Use ROR
A business invests $5000 and initially plans to achieve annual revenue of $1100/yr with $200/yr expenses (starting at the end of ar 1) for ten years. No market value if used for ten years. 1.If at the end of the sixth year, instead, the investment is sold for $1000, calculate the PW, FW and AW for a BTCF MARR of 12%. Is the investment a good one if used this way? Why?
Aside from paying penalties what other reasons (at least 3), on why we need to be BIR compliant or remit 2550M?
You recently bought a mini-supercomputer for $10,000 to allow for tracking and analysis of real-time changes in stock and bond prices. Assume you plan on spending half your time tending to the stock market with this computer and the other half as personal use. Also assume you can depreciate your computer by 20% per year over 5 years (straight line rate). How much tax savings will you have in each of those 5 years, if any? Use a tax rate of 28%.
Pertinent information for two alternatives A and B is shown below. If i=10% / year and the effective income tax rate is 35%, answer the following true/false questions. Alt. A 150,000 100,000 30,000 15,000 5 Basis, $ Gross Income (GI), $ Operating Expense (OE), $ Salvage Value, $ MARCS Recovery, Years The CFAT at the end of year 4 for Alt. A is less than $40,000. True False Alt.B 225,000 100,000 10,000 22,500 5

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS