HomeworkLib
Question

Part A A $400,000 investment in a surface mount placement machine produces pre-tax revenue of $37050/yr for 10 years, at which time the SMP machine has a salvage value of $100,000. Based on a 25% income tax rate, a 12% after tax MARR & SLN depreciation what will, be the AT (After Tax Present worth of the investment? 168420.43 Part B Brian a Temple graduate suggests using a 6% bond issue to pay for the investment from the previous example, what will the ATPW be? $-32815.08 that a bond pays interest only each year and is repaid in full at the end of the term. (remember

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

PART A - pHe-TMX Revenu 437050 Salovage Valni at Maddin = 00,000 Tox MARR 127. alculatou epesabieu DepCot -Salavogt Value 00,corD 00 lo Caluulation of Post Tax Ravenu Poe Taχ Revenue Less: bepresiatior 2 70 50 -3000 o 705o -762- 5 5287-5 Pest tar Revenue5287.5 PVAF (12%, ID) 29 875-55 k PUA FPresent Valuą Annuity Fastor PART Integust Roda on Bend= 6X Anual! Calculatie 4ftus Ton kneut watLA 5287.5 、MAF (6%/b) $38116. 6

0 0
Add a comment
Know the answer?
Add Answer to:
Part A A $400,000 investment in a surface mount placement machine produces pre-tax revenue of $37050/yr...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Part A A $400,000 investment in a surface mount placement machine produces pre-tax revenue of $58530/yr...

    Part A A $400,000 investment in a surface mount placement machine produces pre-tax revenue of $58530/yr for 10 years, at which time the SMP machine has a salvage value of $100,000. Based on a 25% income tax rate, a 12% after tax MARR, & SLN depreciation, what will be the ATPW (After Tax Present Worth) of the investment? $ _____ Part B Brian a Temple graduate suggests using a 6% bond issue to pay for the investment from the previous...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT