O 12 O A piece of newly purchased industrial equipment costs $968,662.00 and is classified as a seven-year property under MACRS. What is the book value of this piece of equipment at the end of year 3? Submit Answer format: Currency: Round to: 2 decimal places. Show Hint A firm purchases a new work cell for $360,489.00. The asset will be depreciated using a 3-year MACRS schedule. What is the book value of the asset after the third year? (Assume that there is no depreciation allowed at year 0) Submit Answer format: Currency: Round to: 2 decimal places. Show Hint A firm buys a piece of equipment for $115,926.00 and will straight-line depreciate it to zero over five years. If the tax rate is 40.00%, what is the present value of the depreciation tax shield if the cost of capital is 11.00%? Submit Answer format: Currency: Round to: 2 decimal places. Show Hint
O 12 O A piece of newly purchased industrial equipment costs $968,662.00 and is classified as a seven-year property under MACRS. What is the book value of this piece of equipment at the end of year 3? Submit Answer format: Currency: Round to: 2 decimal places. Show Hint A firm purchases a new work cell for $360,489.00. The asset will be depreciated using a 3-year MACRS schedule. What is the book value of the asset after the third year? (Assume that there is no depreciation allowed at year 0) Submit Answer format: Currency: Round to: 2 decimal places. Show Hint A firm buys a piece of equipment for $115,926.00 and will straight-line depreciate it to zero over five years. If the tax rate is 40.00%, what is the present value of the depreciation tax shield if the cost of capital is 11.00%? Submit Answer format: Currency: Round to: 2 decimal places. Show Hint
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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#2 O
8
O
A piece of newly purchased Industrial equipment costs $968,662.00 and is classified as a seven-year property under
MACRS. What is the book value of this piece of equipment at the end of year 3?
Submit
Answer format: Currency: Round to: 2 decimal places.
Show Hint
A firm purchases a new work cell for $360,489.00. The asset will be depreciated using a 3-year MACRS schedule. What
is the book value of the asset after the third year? (Assume that there is no depreciation allowed at year 0)
Submit
Answer format: Currency: Round to: 2 decimal places.
Show Hint
A firm buys a piece of equipment for $115,926.00 and will straight-line depreciate it to zero over five years. If the tax
rate is 40.00%, what is the present value of the depreciation tax shield if the cost of capital is 11.00%?
Submit
Answer format: Currency: Round to: 2 decimal places.
Show Hint
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