OPPO A79 5G Rathod Kishan Your firm needs a computerized machine tool lathe which costs $44,000 and requires $11,400 in maintenance for each year of its 3 year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category, and neither bonus depreciation nor Section 179 expensing can be used. Assume a tax rate of 21 percent and a discount rate of 11 percent. If the lathe can be sold for $4,400 at the end of year 3, what is the after- tax salvage value? (Round your answer to 2 decimal places.) Salvage value after tax Sub-subject Search
OPPO A79 5G Rathod Kishan Your firm needs a computerized machine tool lathe which costs $44,000 and requires $11,400 in maintenance for each year of its 3 year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category, and neither bonus depreciation nor Section 179 expensing can be used. Assume a tax rate of 21 percent and a discount rate of 11 percent. If the lathe can be sold for $4,400 at the end of year 3, what is the after- tax salvage value? (Round your answer to 2 decimal places.) Salvage value after tax Sub-subject Search
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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Transcribed Image Text:OPPO A79 5G
Rathod Kishan
Your firm needs a computerized machine tool lathe which costs $44,000
and requires $11,400 in maintenance for each year of its 3 year life. After
three years, this machine will be replaced. The machine falls into the
MACRS 3-year class life category, and neither bonus depreciation nor
Section 179 expensing can be used. Assume a tax rate of 21 percent and
a discount rate of 11 percent.
If the lathe can be sold for $4,400 at the end of year 3, what is the after-
tax salvage value? (Round your answer to 2 decimal places.)
Salvage value after tax
Sub-subject
Search
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