Don't use ai to answer I will report you answer Perfect Accruals Inc., purchased an asset five years ago for a cost of $950,000. The asset hasa CCA rate of 30%. The company is selling this asset for 20% of its original cost. By whatamount should the UCC in the asset class be reduced by, if the accelerated investmentincentive method is used?Multiple Choice$276,972$64,548$190,000$125,452$53,765

In order to figure out how much to reduce the Undepreciated Capital Cost in the asset class, we'll…

Answered: Perfect Accruals Inc., purchased an…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 14P

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Jenson Corp. is planning to use its land to build a new manufacturing plant. Since projects R and S are mutually exclusive which project/projects should be accepted if the discount rate is 7%?
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Question A .A machine is purchased and depreciated over four years. The tax rate is 21% and the project's cost of capital is 10.50%. What is the after tax salvage value if the machine is purchased today for $690,000 and sold for $175,000 after three years? Multiple Choice $138,250 $174,475 $189,450 $174,900 Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line
In the design of a special-use structure, two mutually exclusive alternativesare under consideration. These design alternatives are as follows: If perpetual service from the structure is assumed, which design alternative do you recommend? The MARR is 10% per year.
Homer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net Income after tax of $169,650. The equipment will have an initial cost of $585,000 and have a 5-year life. If the salvage value of the equipment is estimated to be $25,000, what is the annual net cash flow? Multiple Choice $144,650 $57,650 $281650 $194,650
The following data pertain to an investment proposal (Ignore income taxes.): Cost of the investment $ 52,000 Annual cost savings $ 16,000 Estimated salvage value $ 8,000 Life of the project 5 years Discount rate 13 % Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed investment is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
The following data pertain to an investment proposal (Ignore income taxes.): Cost of the investment $ 36,000 Annual cost savings $ 11,000 Estimated salvage value $ 4,000 Life of the project 5 years Discount rate 13% Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed investment is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Should WLW lease or construct their own production facilityOption 1: ConstructCosts to incur:Buying land, construct building and getting ready for use$ 360,000Taxes, insurance, and repairs (per year)$ 34,000Intended years of use20Projected market value in 20 years$ 1,600,000Maximum down payment WLW can make$ 500,000Remainder in four payments of;$ 160,000Revenue opportunityBuilding annex will be leased to a tenant and will generate a lease revenue (per year) for 10 years$60,000Option 2: LeaseIntended years of use20First lease payment due now$ 90,000Rest of the lease payments (years 2-20)$ 90,000Operating costs to be paid by WLWRepairs (annual)$ 9,000Maintenance (annual)$ 26,000Initial one-time deposit, will be returned in year 20$ 40,000Required rate of return15%Methodology:The consulting team is proposing to perform a NPV analysis and determine the benefit to leasing or construction.Based on the analysis, they will recommend the preferred option (construction or leasing).
Given the following information and assuming straight-line depreciation to zero, what is the IRR of this project? Initial investment = $400,000; life = four years; cost savings = $125,000 per year; salvage value = $20,000 in year 5; tax rate = 34%; discount rate = 12%.Multiple Choice7.51%9.43%10.24%6.25%8.15%

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