!Required informationA project has a first cost of $820000, a salvage value of 20.00% of the first cost after 3 years, and annual (GI-OE) of$270000. Assume the company has a Te of 37%.Determine the before-tax rate of return (ROR). (Round the final answer to three decimal places.)The before-tax rate of return (ROR) is determined to be 34.325%.

First, we need to calculate the salvage value. The project has a first cost of $820,000, and after 3…

Answered: ! Required information A project has a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A small used delivery van can be purchased for $20,000. At the end of its useful life (8 years), the van can be sold for $3000. Determine the PW of the depreciation schedule based on 15% interest using:(a) Straight-line depreciation(b) Double declining balance depreciation(c) 100% bonus depreciation(d) MACRS depreciation
Help me solve this one
VML Industries has need of specialized yarn manufacturingequipment for operations over the next 3 years. The firm could buythe machinery for $95,000 and depreciate it using MACRS. Annualmaintenance would be $7500, and it would have a salvage value of$25,000 after 3 years. Another alternative would be to lease thesame machine for $45,000 per year on an “all costs” inclusive lease(maintenance costs included in lease payment). These leasepayments are due at the beginning of each year. VML Industriesuses an after-tax MARR of 18% and a combined tax rate of 28%. Doan after-tax present worth analysis to determine which option ispreferred.
Consider the following financial information for an engineer: Age: 25Status: Single, no childrenGross Income: $54,000 401k investment: $4000Residential status: RentingTotal eligible itemized deductions: $3000 for charitable donations What is the taxable income? (IF you need to use them, assume the standard deduction for single is $12000 and married is $24000).
If the value of machinery is $50000 and the company follows the straight-line method of depreciation, assuming useful life of the asset as 5 years and salvage value as $10000 then what will be the yearly depreciation charge
A numerically controlled milling machine was purchased for $95,000. The estimated salvage value was $15,000 after 15 years. What is the machine’s book value after 5 years of depreciation? If the machine is sold for $20,000 early in Year 7, how much gain on sale or recaptured depreciation is there? Assume(a) Straight-line depreciation(b) 150% declining balance depreciation(c) 80% bonus depreciation with the balance using 7-year MACRS depreciation(d) 7-year MACRS depreciation
A machine costs $7000, lasts 8 years and has a salvage value at the end of life of $350. Determine the depreciation charge during the 4th year and the book value at the end of 4 years by the: a.) Straight line method b.) Declining balance method c.) SYD method d.) Sinking fund method with interest of 12%
An equipment has a first cost of P25, 000 has a salvage value of 3000 after 8 years. What is the depreciation(P) after 4 years using declining balance method?
A pump costs $7000 has a life of 5 years with no salvage value. What is the SL depreciation amount for each year? Assume the depreciation will take over the entire life.
What will be the cost of an asset, if its salvage value is 300 after 5 years and annual depreciation charge is 500, use the Straight Line Depreciation rule. Select one: a. 2800$ b. 2750$ c. 2840$
Determine the rate of depreciation, the total depreciation, the total depreciation up to the end of the 8th year and the book value at the end of 8 years for an asset that costs P 15,000 new and has an estimated scrap value of P 2,000 at the end of 10 years by (a) Declining balance method (b) Double Declining balance method
New equipment to read 96-bit product codes thatare replacing old bar codes has just been purchasedby General Food Stores. As a trial, 1000 of theitems will be initially purchased. For book depreciation purposes (not tax), the total investmentof $50,000 will be written off over a 4-yearperiod, with no salvage value, by applying one ofthree methodsSL, 1.75% DB, or DDB. The objectiveis to have the largest amount of accumulateddepreciation after 2 years, in order to minimizethe lost depreciation if it is again necessary topurchase new-technology readers prior to the end ofthe 4-year useful life of the readers just purchased.You know that the answer is the DDB method, butyou must graphically demonstrate this result to yoursupervisor. Use a spreadsheet to do so.

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