It is known that the present worth of salvage value of a car at the end...
It is known that the present worth of salvage value of a car at
the end of its 10th year is $2,070.
What was the purchase price of the car if its depreciation rate is
20% and MARR is 10%?
A. $55,300
B. $38,600
C. $50,000
D. $40,000
E. $19,300?
Homework Answers
Add Answer to:
It is known that the present worth of salvage value of a car at
the end...
please help with question #12.24 without using excel. net present worth of this investment. Contributedby value,...
please help with question #12.24 without using
excel.
net present worth of this investment. Contributedby value, and Assume unit 444 CHAPTER 12: INCOME TAXES FOR CORPORATIONS Mukasa Ssemakula, Wayne State University (b) Explain why the rate of return obtained in part (a) is different from the rate of return obtained in Problem 12-20. 12-25 A firm has invested $400.000 in car- ment. They will depreciate the r-washing equip equipment by 6% (a) Comput (b) Comput MACRS G MACRS, assuming a...
5.(20 pts) A special power tool for plastic products is classified $6,500, has a salvage value...
5.(20 pts) A special power tool for plastic products is classified $6,500, has a salvage value of $800 when sold at the end of 5 years, uniform annual end-of-ycar benefits (before tax) of $3,500 per year, and uniform annual operating and maintenance costs (before tax) of $1,200 per year. Compute the after-tax present worth (for an MARR of 10% ) , based on MACRS depreciation and a 34% corporate income tax rate. (MACRS percentages for a three-year property are 33.33%,...
5.(20 pts) A special power tool for plastic products is classified $6,500, has a salvage value...
5.(20 pts) A special power tool for plastic products is classified $6,500, has a salvage value of $800 when sold at the end of 5 years, uniform annual end-of-ycar benefits (before tax) of $3,500 per year, and uniform annual operating and maintenance costs (before tax) of $1,200 per year. Compute the after-tax present worth (for an MARR of 10% ) , based on MACRS depreciation and a 34% corporate income tax rate. (MACRS percentages for a three-year property are 33.33%,...
Develop a spreadsheet to determine the next present value or present worth of the following proje...
Develop a spreadsheet to determine the next present value or present worth of the following project: Investment: 170,000 Revenue/Savings: 32,000 Incremental Expense/Cost: 6,000 Salvage Value: 20,000 Project Life: 10 years MACRS Schedule: 7 years Tax Rate: 24% MARR: 12% Inflation: 3% Complete this on the basis of a real dollars basis rather than actual dollars. Is this a good investment to make? Year Percent 1 14.29% 2 24.49% 3 17.49% 4 12.49% 5 8.93% 6 8.92% 7 8.93% 8 4.46%
only numbers 2,3, and 6 You are trying to decide a present worth of a contract....
only numbers 2,3, and 6
You are trying to decide a present worth of a contract. You will receive $10,000 when the contract is signed, a $20,000 payment at the end of Year 1, and $30,000 at the end of Year 2. and $40,000 at the end of Year 3, and $50,000 at the end of Year 4 when the project is completed. Your annual costs for this project are $10,000 per year. What is the present worth of the...
5. (20 Points) A company purchased a machine for $50,000 that has an estimated salvage value of $10,000 at the end...
5. (20 Points) A company purchased a machine for $50,000 that has an estimated salvage value of $10,000 at the end of 8 year useful life. Compute the depreciation table by (a) Straight Line method (b) MACRS method (7-year property) (e) If you want to sell the machine in 4th year what book value you will use? (d) What book value you will use to pay tax to IRS in 4th year?
5. (20 Points) A company purchased a machine...
Evaluate a combined cycle power plant on the basis of the Present Worth Method (PW) when...
Evaluate a combined cycle power plant on the basis of the Present Worth Method (PW) when MARR is 12 % per year. Pertinent cost data are as follows: (Power Plant (thousands of S) Investment Cost: $10,334 Useful life: 15 ears Market Value (EOY 15): $3.000 Annual Operating expenses: $1.000 Overhaul cost-end of 5th year $1,490 Overhaul cost-end of 10th year $1.172
Find cost difference between 2 options using net present worth analysis Your company signed a contract...
Find cost difference between 2 options using net present worth
analysis
Your company signed a contract to remove soil from government-owned property. This task requires a specific bulldozer to dig and load the material onto a transportation vehicle. There are two models of ripper-bulldozer to consider: Model Alpha costs $200,000, and two units of model alpha would be required to remove the material within 2 years. Operating cost for each unit would run to $40,000/year for 2000 hours of operation....
Office furniture costs $50,000 and has a salvage value of $500 at the end of a...
Office furniture costs $50,000 and has a salvage value of $500 at the end of a 10-year depreciable life. Compute the depreciation charge and book value at the end of 10 years using straight line depreciation. O 4500 04985 O 4950 O Cannot be determined
A delivery truck was just purchased for $80,000. It's estimated salvage value at the end of...
A delivery truck was just purchased for $80,000. It's estimated salvage value at the end of its useful life, in 8 years, is $20,000. Assume 25% tax rate, and straight-line depreciation. a. What is the amount of annual depreciation? b. What is the book value after 6 years? C. Assuming the company decides to sell the truck after 6 years of service, and receives $50,000 from the sale, calculate the after-tax net cash inflow from the sale of the truck....
please help with question #12.24 without using
excel.
net present worth of this investment. Contributedby value, and Assume unit 444 CHAPTER 12: INCOME TAXES FOR CORPORATIONS Mukasa Ssemakula, Wayne State University (b) Explain why the rate of return obtained in part (a) is different from the rate of return obtained in Problem 12-20. 12-25 A firm has invested $400.000 in car- ment. They will depreciate the r-washing equip equipment by 6% (a) Comput (b) Comput MACRS G MACRS, assuming a...
5.(20 pts) A special power tool for plastic products is classified $6,500, has a salvage value of $800 when sold at the end of 5 years, uniform annual end-of-ycar benefits (before tax) of $3,500 per year, and uniform annual operating and maintenance costs (before tax) of $1,200 per year. Compute the after-tax present worth (for an MARR of 10% ) , based on MACRS depreciation and a 34% corporate income tax rate. (MACRS percentages for a three-year property are 33.33%,...
5.(20 pts) A special power tool for plastic products is classified $6,500, has a salvage value of $800 when sold at the end of 5 years, uniform annual end-of-ycar benefits (before tax) of $3,500 per year, and uniform annual operating and maintenance costs (before tax) of $1,200 per year. Compute the after-tax present worth (for an MARR of 10% ) , based on MACRS depreciation and a 34% corporate income tax rate. (MACRS percentages for a three-year property are 33.33%,...
only numbers 2,3, and 6
You are trying to decide a present worth of a contract. You will receive $10,000 when the contract is signed, a $20,000 payment at the end of Year 1, and $30,000 at the end of Year 2. and $40,000 at the end of Year 3, and $50,000 at the end of Year 4 when the project is completed. Your annual costs for this project are $10,000 per year. What is the present worth of the...
5. (20 Points) A company purchased a machine for $50,000 that has an estimated salvage value of $10,000 at the end of 8 year useful life. Compute the depreciation table by (a) Straight Line method (b) MACRS method (7-year property) (e) If you want to sell the machine in 4th year what book value you will use? (d) What book value you will use to pay tax to IRS in 4th year?
5. (20 Points) A company purchased a machine...
Evaluate a combined cycle power plant on the basis of the Present Worth Method (PW) when MARR is 12 % per year. Pertinent cost data are as follows: (Power Plant (thousands of S) Investment Cost: $10,334 Useful life: 15 ears Market Value (EOY 15): $3.000 Annual Operating expenses: $1.000 Overhaul cost-end of 5th year $1,490 Overhaul cost-end of 10th year $1.172
Find cost difference between 2 options using net present worth
analysis
Your company signed a contract to remove soil from government-owned property. This task requires a specific bulldozer to dig and load the material onto a transportation vehicle. There are two models of ripper-bulldozer to consider: Model Alpha costs $200,000, and two units of model alpha would be required to remove the material within 2 years. Operating cost for each unit would run to $40,000/year for 2000 hours of operation....
Office furniture costs $50,000 and has a salvage value of $500 at the end of a 10-year depreciable life. Compute the depreciation charge and book value at the end of 10 years using straight line depreciation. O 4500 04985 O 4950 O Cannot be determined
A delivery truck was just purchased for $80,000. It's estimated salvage value at the end of its useful life, in 8 years, is $20,000. Assume 25% tax rate, and straight-line depreciation. a. What is the amount of annual depreciation? b. What is the book value after 6 years? C. Assuming the company decides to sell the truck after 6 years of service, and receives $50,000 from the sale, calculate the after-tax net cash inflow from the sale of the truck....
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago