pany has purchased a machine at the cost of $35,000. The machine is expected to provide annual savings of $50,000 for two years and is to be depreciated by the MACRS three-year recovery period. This machine will require annual operating and maintenance costs in the amount of $15,000. The salvage value at the end of two years is expected to be $8,000. a) Assuming a marginal tax rate of 30% and MARR of 10%, what are the following for the Income Statement: Revenue,Expenses, Depreciation, Taxable Income, Taxes (30%), Net Income. What are the following for the Cash Flow Statement: Net Income, Depreciation, Capital Expenditure, Salvage Value, Gains Tax / Credit, Net After Tax Cash Flow. b) Assume MARR of 8%, calculate NPV of the proje
A company has purchased a machine at the cost of $35,000. The machine is expected to provide annual savings of $50,000 for two years and is to be
a) Assuming a marginal tax rate of 30% and MARR of 10%, what are the following for the Income Statement:
Revenue,Expenses, Depreciation, Taxable Income, Taxes (30%), Net Income.
What are the following for the
b) Assume MARR of 8%, calculate NPV of the project.
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