Refer to DSSS Corporation. What is the book value of the machine at the end of year 4? Group of answer choices $20,379 $45,862 $10,196 $61,163
Refer to DSSS Corporation. What is the book value of the machine at the end of year 4? Group of answer choices $20,379 $45,862 $10,196 $61,163
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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DSSS Corporation
DSSS Corporation is considering a new project to manufacture widgets. The cost of the manufacturing equipment is $135,000. The cost of shipping and installation is an additional $2,600. The asset will fall into the 3-year MACRS class. The year 1- 4 MACRS percentages are 33.33%, 44.45%, 14.81%, and 7.41%, respectively. Sales are expected to be $215,000 per year. Cost of goods sold will be 64% of sales. The project will require an increase in networking capital of $2,600. At the end of three years, DSSS plans on ending the project and selling the manufacturing equipment for $30,000. The marginal tax rate is 36% and DSSS Corporation’s appropriate discount rate is 12%. The fixed expenses is $12,000.
Refer to DSSS Corporation. What is the book value of the machine at the end of year 4?
DSSS Corporation is considering a new project to manufacture widgets. The cost of the manufacturing equipment is $135,000. The cost of shipping and installation is an additional $2,600. The asset will fall into the 3-year MACRS class. The year 1- 4 MACRS percentages are 33.33%, 44.45%, 14.81%, and 7.41%, respectively. Sales are expected to be $215,000 per year. Cost of goods sold will be 64% of sales. The project will require an increase in net
Refer to DSSS Corporation. What is the book value of the machine at the end of year 4?
Group of answer choices
$20,379
$45,862
$10,196
$61,163
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