PLEASE USE EXCEL AND SHOW FORMULASSix years ago, a company purchased $30,000 of equipment. The equipmenthas just been sold for $5000. The equipment was depreciated using 50% bonusdepreciation / 50% MACRS (using a 5-year recovery period). The actual savingsdue to the purchase of the equipment is shown below. The firm's MARR is 12%and it's tax rate is 25%. What is the after-tax present worth of the investment?Year123456Savings 500060007000700040003000

Present Worth is defined as the current value of the future cashflows It can be calculated as:…

Answered: Six years ago, a company purchased…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An automated assembly robot that cost $362,000 has a depreciable life of 5 years with a $90,000 salvage value. The MACRS (Modified Accelerated Cost Recovery System) depreciation rates for years 1, 2, 3, and 6 are 20.00%, 32.00%, 19.20%, and 5.76%, respectively. What is the book value at the end of year 3? Year 5? Year 6? The book value at the end of year 3 is $ . The book value at the end of year 5 is $ . The book value at the end of year 6 is $
BlastCo Analytics needs to purchase a new metal shaper. BlastCo’s after-tax MARR is 12% and the corporate tax rate is 54%. A metal shaper is a CCA Class 8 asset. The remaining data are contained in the table below. Model First Cost Economic Life (Years) Annual Net Savings Salvage Value Flex $100,000 5 $50,000 $20,000 Blender $120,000 5 $55,000 $25,000 Flextastic $200,000 5 $75,000 $100,000 (a) Using the annual worth method, which model should BlastCo buy?(b) What is the approximate after tax IRR of each model?(c) What is the exact after tax IRR of each model? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
A manufacturing company purchases a new machine for $10,000. The expected useful life of the machine is 5 years, and it has no residual value. Calculate the annual depreciation expense using the straight-line depreciation method.
Sword Properties in Knoxville, TN built a shopping center at a cost $50M in year 2010. The company started leasing space in July of 2010. Assuming the land was purchased for $5M; determine the depreciation charges through 2013 if the property was sold in November 2013.
Paragon Properties built a shopping center at a cost of $50M in year 2010. The company started leasing space in July of 2014. The land was purchased for $5M. Determine the depreciation charges through 2017 if the property was sold in November 2017. $4,615,200 $5,002,200 $3,563,100 $3,991,050
A miniature building company named Tiny Touches purchased a 3D printer which costs $250,000. It is expected to last for 15 years and at the end of its useful life, it will cost $25,005 Find the annual depreciation if it’s depreciation using sinking fund method at 7%
43-44
Given: Desk purchased January 12 for $2,000; 8-year useful life; $600 salvage value. Calculate depreciation, to the nearest dollar, for year 2 using the 200% declining-balance method.
!
Engineering Economics
A corporation purchased a machine for $60,000 three years ago. It had an estimated life of 10 years and an estimated salvage value of $9.200. The current BV of this machine is $29,000. If the current MVof the machine is $36,500 and the effective income tax rate is 22%, what is the after-tax investment value of the machine? Use the outsider viewpoint. Choose the correct answer below. A. $28,400 OB. $38.150 OC. $29,680 OD. $34,850 OE $36,500
a plant erected to manufacture socks with the 1st cost of 10,000,000 with an estimated salvage value of 100,000 at the end of 25 years. with the total depreciation after 10 years, using the sinking fund method at a 6% interest rate

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