A machinery that costs $100,000, has a service life of 5 years and a salvage value of $10,000 at the end ofservice life. The Gross Income - Operating Expenses expected to be generated for the use of this machine isestimated to be $50.000 per year for up to 5 years. The Tax rate is 30% and the MARR afer tax is 8% per year.Using Double Declining Balance Method of depreciation, determine:Findthe total taxes paid for the five year period and the Net Present Worth(NPW) of these taxes paid.Find the Cash Flow After Tax(CFAT) and the NPW of this CFAT.(Construct/develop your CFAT table to answers these questions.)

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Description: A machinery that costs $100,000, has a service life of 5 years and a salvage value of $10,000 at the end ofservice life. The Gross Income - Operating Expenses expected to be generated for the use of this machine isestimated to be $50.000 per year fo

Initial Investment $ 1,00,000.00 Salvage Value $ 10,000.00 Tax Rate 30% MARR After…

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A machinery that costs $100,000, has a service life of 5 years and a salvage value of $10,000 at the end of service life. The Gross Income - Operating Expenses expected to be generated for the use of this machine is estimated to be $50,000 per year for up to 5 years. The Tax rate is 30% and the MARR after tax is 8% per year. Using Double Declining Balance Method of depreciation, determine: Findthe total taxes paid for the five year period and the Net Present Worth(NPW) of these taxes paid. Find the Cash Flow After Tax(CFAT) and the NPW of this CFAT. (Construct/develop your CFAT table to answers these questions.)

A machinery that costs $100,000, has a service life of 5 years and a salvage value of $10,000 at the end of service life. The Gross Income - Operating Expenses expected to be generated for the use of this machine is estimated to be $50,000 per year for up to 5 years. The Tax rate is 30% and the MARR after tax is 8% per year. Using Double Declining Balance Method of depreciation, determine: Findthe total taxes paid for the five year period and the Net Present Worth(NPW) of these taxes paid. Find the Cash Flow After Tax(CFAT) and the NPW of this CFAT. (Construct/develop your CFAT table to answers these questions.)

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....

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