S Effective income tax rateAfter-tax MARREOY BTCF Depreciation50%12%$237,000.00 23,750.00$$337,000.00 23,750.00$$437,000.00 23,750.00Taxable Income"Income TaxesATCF$(95,000.00)$30,375.00$30,375.00$30,375.00$30,375.00(95,000.00)$$$137,000.00 23,750.00 13,250.00 -$6,625.00$13,250.00 -$6,625.00$13,250.00 -$6,625.00$13,250.00 -$6,625.00For the given table, find the EVA in year 3 (please round the result to integer, e.g., ifthe result is $ 5,732.07, fill in 5732);Should this project be invested based on the annual/present/future equivalent EVA(fill in "1" if the answer is "yes", otherwise fill in "0")?

A measure of a company's financial performance known as economic value added (EVA) is based on the…

Effective income tax rate After-tax MARR EOY BTCF $ (95,000.00) 50% 12% Depreciation Taxable Income Income Taxes $ $ 137,000.00 23,750.00 $ 13,250.00 ATCF $ (95,000.00) 30,375.00 30,375.00 $ 30,375.00 $ 30,375.00 -$6,625.00$ -$6,625.00$ $ 237,000.00 23,750.00 13,250.00 $ $ 337,000.00 23,750.00 $ 13,250.00 -$6,625.00 437,000.00 23,750.00 13,250.00 -$6,625.00 For the given table, find the EVA in year 3 (please round the result to integer, e.g., if the result is $ 5,732.07, fill in 5732); Should this project be invested based on the annual/present/future equivalent EVA (fill in "1" if the answer is "yes", otherwise fill in "0")?

Effective income tax rate After-tax MARR EOY BTCF $ (95,000.00) 50% 12% Depreciation Taxable Income Income Taxes $ $ 137,000.00 23,750.00 $ 13,250.00 ATCF $ (95,000.00) 30,375.00 30,375.00 $ 30,375.00 $ 30,375.00 -$6,625.00$ -$6,625.00$ $ 237,000.00 23,750.00 13,250.00 $ $ 337,000.00 23,750.00 $ 13,250.00 -$6,625.00 437,000.00 23,750.00 13,250.00 -$6,625.00 For the given table, find the EVA in year 3 (please round the result to integer, e.g., if the result is $ 5,732.07, fill in 5732); Should this project be invested based on the annual/present/future equivalent EVA (fill in "1" if the answer is "yes", otherwise fill in "0")?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: which are the Regional Economic Influences on Property Values?

A: Property values: The property values indicates the value of a piece of real estate, which is depends…

Q: cyrpto-currenty

A: Digital currency refers to currency that exists only in electronic form. These currencies lack a…

Q: clude correctly labeled diagrams, if useful or required, in explaining your answers. A correctly…

A: *Answer:

Q: Do the Retained earnings belong to the stakeholders? Why?

A: Retained earnings are the amount of net earnings left to a company after its owners have paid out…

Q: .How are the income taxes determined?

A: The income tax is the tax that is levied on the income of the people directly. It is collected,…

Q: Based on the illustration what is the dollar amount of the revenues collect by government after the…

A: Government revenue or national revenue refers to the money received by a govt. from taxes as well as…

Q: Refer to Figure 8-5. Assume the tax was levied on the producer. Which area represents the reduction…

A: Taxation is the main source of revenue that governments receive. As a result of the customer paying…

Q: 10. Understanding marginal and average tax rates Using the information provided on the income tax…

A: The marginal tax rate is the additional tax income due to a change in tax liability. The marginal…

Q: Identify the largest 5 backs in the United stated.

A: One correction is needed in the above question, hopefully, it is asking for the largest banks in the…

Q: who pays the corporate taxes the globel ecomany

A: When there is high tax rate in the economy then the firms respond by lowering the investments and…

Q: Say a worker has a time endowment of 80 hours a week that can be allocated between labour and…

A: Total hours available to a worker = 80 hoursThe total hours may be divided between labour and…

Q: 10. Fiscal policy and investment. Read Focus Box "Deficit Reduction: Good or Bad for Investment?" In…

A: Macroeconomics is a branch of economics focused on the behavior and performance of an economy as a…

Q: Government-imposed taxes cause reductions in the activity that is being taxed, which has important…

A: There are many sub-parts of the question. As per honor code, we can only provide solution of first…

Q: What is a SIF?

A: A SIF is a form of Security investment fund that can invest in a variety of assets. It normally…

Q: Which of the following is an example of a Tax Deduction? O Cothing Expenses Child Dependency…

A: Tax deduction refers to claims made to reduce your taxable income, arising from various investments…

Q: @0 (3) (d) 9. C I a foodien 6. Troy buys a sound system priced at $8,820.00 but paid $9,702.00 with…

A: It is given that the price of the product is $8,820.00 and the consumer purchases the commodity at…

Q: The equation of demand is Q=10000-5p, supply is Q=-2000+10p Q represents the quantity of houses on…

A: The demand function is Q=10,000-5pThe supply function is Q=-2,000+10p The equilibrium rental price…

Q: If the government is to cover childcare costs, how do you explain it to non-parents who don’t want…

A: The objective of this question is to explain the economic rationale behind government covering…

Q: Suppose a manufacturer of software develops a new computer program that sells for $50. The $50 cost…

A: Value added is a way to quantify the economic value produced when producing goods or services. It is…

Q: 8 Price (dollars per CD 30 20 10 $ tax on seller X 0 10 20 30 40 50 60 70 80 Quontity (millions of…

A: When a tax is imposed, the ss(supply curve) shifts to the left or it decreases as now the cost of…

Question

Effective income tax rate
After-tax MARR
EOY BTCF Depreciation
50%
12%
$
237,000.00 23,750.00
$
$
337,000.00 23,750.00
$
$
437,000.00 23,750.00
Taxable Income
"Income Taxes
ATCF
$
(95,000.00)
$
30,375.00
$
30,375.00
$
30,375.00
$
30,375.00
(95,000.00)
$
$
$
137,000.00 23,750.00 13,250.00 -$6,625.00
$
13,250.00 -$6,625.00
$
13,250.00 -$6,625.00
$
13,250.00 -$6,625.00
For the given table, find the EVA in year 3 (please round the result to integer, e.g., if
the result is $ 5,732.07, fill in 5732);
Should this project be invested based on the annual/present/future equivalent EVA
(fill in "1" if the answer is "yes", otherwise fill in "0")?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Economic value added (EVA):-

VIEW

Step 2: Calculate EVA in year 3:-

VIEW

Step 3: Find when project should be invested

VIEW

Solution

VIEW

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

estion 4 of 100 Which of the following items is an inferior good? O Luxury SUVSs Airline tickets O Discount stores Car rentals
11
Typed plz and asap thanks please provide me a quality solution thanks
Econometrics and forecasting What is unit root problem? How does one solve the problem of unit root?
how much a person or family earns in any given period is called
Urgently need
WAGE(Dollars per hour) 20 18 16 14 12 10 8 6 4 2 0 0 40 80 120 160 200 240 280 320 380 400 LABOR (Number of workers) Levied on Employers (Dollars per hour) 4 Supply Tax Proposal 0 2 berand I I Levied on Workers Graph Input Tool Market for Laboratory Aides Wage (Dollars per hour) (Dollars per hour) 0 4 2 Labor Demanded (Number of workers) Demand Shifter Tax Levied on Employers (Dollars per hour) For each of the proposals, use the previous graph to determine the new number of laboratory aides hired. Then compute the after-tax amount paid by employers (that is, the wage paid to workers plus any taxes collected from the employers) and the after-tax amount earned by laboratory aides (that is, the wage received by workers minus any taxes collected from the workers). Quantity Hired (Number of workers) 4 248 0 Labor Supplied (Number of workers) Supply Shifter Tax Levied on Workers (Dollars per hour) After-Tax Wage Paid by Employers (Dollars per hour) 152 After-Tax Wage Received by Workers…
then tax revenue for the