Your firm needs a computerized machine tool lathe which costs $55,000 and requires $12,500 in maintenance for each year of its 3- year life. After three years, this machine will be replaced. The depreciation rate for year-4 is 7.41%, and neither bonus depreciation nor Section 179 expensing can be used. Assume a tax rate of 21 percent and a discount rate of 13 percent. If the lathe can be sold for 5500 at the end of year 3 what is the after- tax salvage value? (Round answer to 2 decimal places)
Your firm needs a computerized machine tool lathe which costs $55,000 and requires $12,500 in maintenance for each year of its 3- year life. After three years, this machine will be replaced. The depreciation rate for year-4 is 7.41%, and neither bonus depreciation nor Section 179 expensing can be used. Assume a tax rate of 21 percent and a discount rate of 13 percent. If the lathe can be sold for 5500 at the end of year 3 what is the after- tax salvage value? (Round answer to 2 decimal places)
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Your firm needs a computerized machine tool lathe which costs $55,000 and requires $12,500 in maintenance for each year of its 3- year life. After three years, this machine will be replaced. The depreciation rate for year-4 is 7.41%, and neither bonus depreciation nor Section 179 expensing can be used. Assume a tax rate of 21 percent and a discount rate of 13 percent.
If the lathe can be sold for 5500 at the end of year 3 what is the after- tax salvage value? (Round answer to 2 decimal places)
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