An asset with 5-year MACRS life will be purchased for $15,000. It will produce net annaul benefits of $3,500 per year for 6years, after which time it will have a net salvage value of zero and will be retired. The company's marginal tax rate is 36%.Complete the following after-tax cash flow table.Enter your answer with 2 decimal places, as follow: 1000.00EOYBTCFMACRSDepreciationTaxable IncomeTaxesATCF0-15000.00-15000.001 3500.00500.00180.003320.0023500.0033500.004 3500.005 3500.001728.003500.00864.00-1300.00-468.003968.00

If you like my answer please upvote

Answered: An asset with 5-year MACRS life will be…

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

An auto company purchase a new truck for their transportations at a price of $350,000. The company expects to use the truck years. expected salvage value of the truc k is $50,000 after the end of its tenth years of useful life. Use the SOYD method of depreciation to calculate the By of the truck after 2 year? A: $54,545 B: $246,394 C: $249,091 D: $103,636
truck production purchased a truck of $85000. the estimated life span is 5years with salvage vlaue of $10000. compute depreciation using 100% bonus depreciation
The depreciation schedule for certain equipment has been arrived at by various methods. The estimated salvage value of the equipment at the end of its 7 years useful life is $366. Identify the resulting depreciation schedules. YEAR I || 1 2 3 4 5 6 7 IV $1335 2336.25 2775 3632 $1335 2002.5 1982 2273 $1335 1668.75 1416 1423 $1335 1335 1011 891 $1335 1001.25 722 558 $1335 667.5 515 349 $1335 333.75 368 219 Which scheme represents DDB depreciation and how much is the first year depreciation? a. III, $2775 O b. 1, $1335 O c. IV, $3632 O d. II, $2336
3 A business needs to purchase packaging equipment that will provide revenue of $120,000 per year for 10 years; operating costs are $40,000 per year for 10 years. The equipment costs $220,000, has an estimated useful life of 10 years, and has a salvage value of $20,000 at the end of that period. It is depreciated using the sum-of-the-years-digits method. The company pays income tax at a rate of 30%, VAT of 16% and MARR of 10%. To acquire the equipment, a loan of $70,000 is requested at a rate of 12.5% annual interest, which must be repaid in six years through equal fixed payments (Rents) each year-end, the first one a year after the purchase. Determine the NPV, IRR, EAC, COST/BENNEFIT. *Please show procedure in Excel*
Solve all this question......you will not solve all questions then I will give you down?? upvote...
i will 10 upvotes
Do not use chatgpt
complete solution, thank you
The depreciation schedule for certain equipment has been arrived at by various methods. The estimated salvage value of the equipment at the end of its 7 year useful life is $700. Identify the resulting depreciation schedules. Year I II III IV 1 $1,329 $2,325 $2,857 $3,161 2 $1,329 $1,993 $2,041 $2,162 3 $1,329 $1,661 $1,458 $1,478 4 $1,329 $1,329 $1,041 $1,011 5 $1,329 $ 996 $ 744 $ 692 6 $1,329 $ 664 $ 531 $ 473 7 $1,329 $ 332 S 379 $ 323 Which scheme represents DB depreciation? Select one: II III IV I
Calculate the depreciation value during the first year using the Declining Balance method of a CCTV system worth $20000 with no salvage value using 200% declining balance which depreciates over 5 years. a. $10000 O b. $12000 O c. $6000 d. $8000
1
Question 1 If you buy an aircraft for 10 million and pay a sales tax of 35%. Prepare depreciation schedule using MACRS, Assuming 10% interest rate, what's the net present worth of the depreciation schedule, using MACRS? Assume 5-yeap property class. Your Answer: Answer

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