A firm is investing in an equipment which falls in 5-years MACRS. The cost of the machine is $200,000 and the firm spent $20,000 for shipping, at the end of its life the machine could be sell for $30,000. If the firm is in 34% tax bracket compute the tax savings from depreciation in year-5. $ 14,960.00 $ 13,600.00 $ 11,333.33 $ 8,616.96 а. b. с. d.
A firm is investing in an equipment which falls in 5-years MACRS. The cost of the machine is $200,000 and the firm spent $20,000 for shipping, at the end of its life the machine could be sell for $30,000. If the firm is in 34% tax bracket compute the tax savings from depreciation in year-5. $ 14,960.00 $ 13,600.00 $ 11,333.33 $ 8,616.96 а. b. с. d.
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 2P
Related questions
Question
![A firm is investing in an equipment which falls in 5-years MACRS. The cost of the machine
is $200,000 and the firm spent $20,000 for shipping, at the end of its life the machine could
be sell for $30,000. If the firm is in 34% tax bracket compute the tax savings from
depreciation in year-5.
$ 14,960.00
$ 13,600.00
$ 11,333.33
$ 8,616.96
a.
b.
с.
d.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2794f2f5-1266-44cb-9149-e9002ec1bbdb%2F1687828b-9404-4ea4-9084-052c27fd68d0%2F2w68zb6_processed.png&w=3840&q=75)
Transcribed Image Text:A firm is investing in an equipment which falls in 5-years MACRS. The cost of the machine
is $200,000 and the firm spent $20,000 for shipping, at the end of its life the machine could
be sell for $30,000. If the firm is in 34% tax bracket compute the tax savings from
depreciation in year-5.
$ 14,960.00
$ 13,600.00
$ 11,333.33
$ 8,616.96
a.
b.
с.
d.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![EBK CFIN](https://www.bartleby.com/isbn_cover_images/9781337671743/9781337671743_smallCoverImage.jpg)
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![EBK CFIN](https://www.bartleby.com/isbn_cover_images/9781337671743/9781337671743_smallCoverImage.jpg)
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)