Determine the present value tax savings under straight-line value method.

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Answer 1

Question

Chapter 12, Problem 45E

1.

To determine

Determine the present value tax savings under straight-line value method.

2.

To determine

Determine the present value tax savings under double-declining balance method.

3.

To determine

Determine the present value of net after-tax cost related with existing machine.

4.

To determine

Determine the present value of net after-tax cost related with replacement of new machine.

5.

To determine

Determine the net present value with replacement of new machine and with existing machine.

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Students have asked these similar questions

Bella Brands operates with two divisions, Aftershave and Deodorant. The Aftershave Division produces a chemical that the Deodorant Division also uses. The Aftershave Division also sells this chemical to other firms for $10 per ounce. The cost information for the Aftershave Division is as follows: Variable costs per ounce $ 6.00 Fixed costs per ounce $ 15.00 Monthly production capacity 30,000 ounces If the Aftershave Division is not operating at full capacity and is able to supply the Deodorant Division with its needs for the chemical, what is the minimum transfer price that the Aftershave Division will accept? Multiple Choice None of the choices is correct. $10.00 per ounce $6.00 per ounce $15.00 per ounce $3.00 per ounce

Brar Incorporated supplied the following financial information for analysis: Depreciable assets (purchased at the beginning of year 1) $ 4,500,000 Profits before depreciation (all in cash flows at end of year): Year 1 960,000 Year 2 1,400,000 Year 3 2,100,000 Replacement cost of depreciable assets at end of: Year 1 $ 5,000,000 Year 2 6,200,000 Year 3 7,600,000 The assets are depreciated at a rate of 12% per year and have no salvage value. What is the ROI for year 2 using historical cost, net book value? Multiple Choice 26.60% 24.72% 25.15% 22.64% None of these.

Bella Brands operates with two divisions, Aftershave and Deodorant. The Aftershave Division produces a chemical that the Deodorant Division also uses. The Aftershave Division also sells this chemical to other firms for $27 per ounce. The cost information for the Aftershave Division is as follows: Variable costs per ounce $ 6.00 Fixed costs per ounce $ 15.00 Monthly production capacity 30,000 ounces If the Aftershave Division is operating at full capacity and can sell all of the chemical that it can produce, what is the minimum transfer price that the Aftershave Division will accept? Multiple Choice None of the choices is correct. $6.00 per ounce $21.00 per ounce $15.00 per ounce $27.00 per ounce

Answer 2

Question

Chapter 12, Problem 45E

1.

To determine

Determine the present value tax savings under straight-line value method.

2.

To determine

Determine the present value tax savings under double-declining balance method.

3.

To determine

Determine the present value of net after-tax cost related with existing machine.

4.

To determine

Determine the present value of net after-tax cost related with replacement of new machine.

5.

To determine

Determine the net present value with replacement of new machine and with existing machine.

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Answer 3

Question

Chapter 12, Problem 45E

1.

To determine

Determine the present value tax savings under straight-line value method.

2.

To determine

Determine the present value tax savings under double-declining balance method.

3.

To determine

Determine the present value of net after-tax cost related with existing machine.

4.

To determine

Determine the present value of net after-tax cost related with replacement of new machine.

5.

To determine

Determine the net present value with replacement of new machine and with existing machine.

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Answer 4

Question

Chapter 12, Problem 45E

1.

To determine

Determine the present value tax savings under straight-line value method.

2.

To determine

Determine the present value tax savings under double-declining balance method.

3.

To determine

Determine the present value of net after-tax cost related with existing machine.

4.

To determine

Determine the present value of net after-tax cost related with replacement of new machine.

5.

To determine

Determine the net present value with replacement of new machine and with existing machine.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 45E

1.

To determine

Determine the present value tax savings under straight-line value method.

2.

To determine

Determine the present value tax savings under double-declining balance method.

3.

To determine

Determine the present value of net after-tax cost related with existing machine.

4.

To determine

Determine the present value of net after-tax cost related with replacement of new machine.

5.

To determine

Determine the net present value with replacement of new machine and with existing machine.

Answer 6

Chapter 12, Problem 45E

1.

To determine

Determine the present value tax savings under straight-line value method.

Answer 7

Chapter 12, Problem 45E

1.

To determine

Determine the present value tax savings under straight-line value method.

Answer 8

2.

To determine

Determine the present value tax savings under double-declining balance method.

Answer 9

2.

To determine

Determine the present value tax savings under double-declining balance method.

Answer 10

3.

To determine

Determine the present value of net after-tax cost related with existing machine.

Answer 11

3.

To determine

Determine the present value of net after-tax cost related with existing machine.

Answer 12

4.

To determine

Determine the present value of net after-tax cost related with replacement of new machine.

Answer 13

4.

To determine

Determine the present value of net after-tax cost related with replacement of new machine.

Answer 14

5.

To determine

Determine the net present value with replacement of new machine and with existing machine.

Answer 15

5.

To determine

Determine the net present value with replacement of new machine and with existing machine.

Answer 16

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Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 12 - Prob. 1Q Ch. 12 - In what ways can accountants add value to the...Ch. 12 - Prob. 3Q Ch. 12 - Prob. 4Q Ch. 12 - Prob. 5Q Ch. 12 - Does the accounting (book) rate of return (ARR)...Ch. 12 - Prob. 7Q Ch. 12 - List at least three important behavioral issues...Ch. 12 - Prob. 9Q Ch. 12 - “Depreciation expenses have no effect on cash...

Determine the present value tax savings under straight-line value method.

Determine the present value tax savings under straight-line value method.

Determine the present value tax savings under double-declining balance method.

Determine the present value of net after-tax cost related with existing machine.

Determine the present value of net after-tax cost related with replacement of new machine.

Determine the net present value with replacement of new machine and with existing machine.

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Chapter 12 Solutions