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An asset used in a four-year project falls in the five-year
MACRS class for tax purposes. The asset has an acquisition cost of
$4,850,000 and will be sold for $1,425,000 at the end of the
project. If the tax rate is 21 percent, what is the aftertax
salvage value of the asset? |
Refer to Table 10.7.Homework Answers
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An asset used in a four-year project falls in the five-year
MACRS class for tax purposes....
An asset used in a four-year project falls in the five-year MACRS class for tax purposes....
An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,150,000 and will be sold for $1,350,000 at the end of the project. If the tax rate is 34 percent, what is the aftertax salvage value of the asset? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.) Refer to Table below: Year Three-Year Five-Year Seven-Year 1 33.33% 20.00% 14.29% 2 44.45 32.00 24.49 3 14.81 19.20 17.49 4 7.41 11.52 12.49 5 11.52 8.93 6 5.76 8.92 7 8.93 8 4.46
Problem 10-8 Calculating Salvage Value [LO1] An asset used in a four-year project falls in the...
Problem 10-8 Calculating Salvage Value [LO1] An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,050,000 and will be sold for $1,250,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax salvage value of the asset? Refer to Table 10.7. (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.) Aftertax salvage value Property Class Year Three-Year...
Ch 10 Homework Table 10.7,4PG 458 Property Class Three-Year 33.33% 44.45 14.81 7.41 Year Five-Year 20.00%...
Ch 10 Homework Table 10.7,4PG 458 Property Class Three-Year 33.33% 44.45 14.81 7.41 Year Five-Year 20.00% 32.00 19.20 1.52 11.52 5.76 Seven-Year 14.29% 17.49 12.49 8.93 8.92 8.93
Purple Haze Machine Shop is considering a four-year project to improve its production efficiency. Buying a...
Purple Haze Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $503,562 is estimated to result in $203,421 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $105,027. The shop's tax rate is 34 percent. What is the after-tax salvage value of this asset? (Round your final answer to the nearest dollar amount....
CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $419,000 is estimated to result in $156,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table) and it will have a salvage value at the end of the project of $57,000. The press also requires an initial investment in spare parts inventory of $16,200, along with an additional $3,200 in inventory for each succeeding year...
Purple Haze Machine Shop is considering a four-year project to improve its production efficiency. Buying a...
Purple Haze Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $555,858 is estimated to result in $195,308 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $91,853. The shop's tax rate is 30 percent. What is the OCF for year 4? (Round your final answer to the nearest dollar amount. Omit the...
Purple Haze Machine Shop is considering a four-year project to improve its production efficiency. Buying a...
Purple Haze Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $573,039 is estimated to result in $238,224 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $99,519. The shop's tax rate is 33 percent. What is the OCF for year 4? (Round your final answer to the nearest dollar amount. Omit the...
Year OVOU AON Property Class Three-Year Five-Year 33.33% 20.00% 44.45 32.00 14.81 19.20 7.41 11.52 11.52...
Year OVOU AON Property Class Three-Year Five-Year 33.33% 20.00% 44.45 32.00 14.81 19.20 7.41 11.52 11.52 5.76 Seven-Year 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 A piece of newly purchased industrial equipment costs $979,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in Table 10.7. Calculate the annual depreciation allowances and end-of-the-year book values fo this equipment. (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate...
CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $401,000 is estimated to result in $147,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table) and it will have a salvage value at the end of the project of $48,000. The press also requires an initial investment in spare parts inventory of $15,300, along with an additional $2,300 in inventory for each succeeding year...
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment...
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.32 million. The fixed asset falls into the three-year MACRS class (MACRS schedule). The project is estimated to generate $1.735 million in annual sales, with costs of $650,000. The project requires an initial investment in net working capital of $250,000, and the fixed asset will have a market value of $180,000 at the end of the project. The tax rate is 21 percent...
Problem 10-8 Calculating Salvage Value [LO1] An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,050,000 and will be sold for $1,250,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax salvage value of the asset? Refer to Table 10.7. (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.) Aftertax salvage value Property Class Year Three-Year...
Ch 10 Homework Table 10.7,4PG 458 Property Class Three-Year 33.33% 44.45 14.81 7.41 Year Five-Year 20.00% 32.00 19.20 1.52 11.52 5.76 Seven-Year 14.29% 17.49 12.49 8.93 8.92 8.93
CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $419,000 is estimated to result in $156,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table) and it will have a salvage value at the end of the project of $57,000. The press also requires an initial investment in spare parts inventory of $16,200, along with an additional $3,200 in inventory for each succeeding year...
Year OVOU AON Property Class Three-Year Five-Year 33.33% 20.00% 44.45 32.00 14.81 19.20 7.41 11.52 11.52 5.76 Seven-Year 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 A piece of newly purchased industrial equipment costs $979,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in Table 10.7. Calculate the annual depreciation allowances and end-of-the-year book values fo this equipment. (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate...
CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $401,000 is estimated to result in $147,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table) and it will have a salvage value at the end of the project of $48,000. The press also requires an initial investment in spare parts inventory of $15,300, along with an additional $2,300 in inventory for each succeeding year...
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.32 million. The fixed asset falls into the three-year MACRS class (MACRS schedule). The project is estimated to generate $1.735 million in annual sales, with costs of $650,000. The project requires an initial investment in net working capital of $250,000, and the fixed asset will have a market value of $180,000 at the end of the project. The tax rate is 21 percent...
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