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15) A machine costs $50,000 today and has an estimated scrap (salvage) cash value of $10,000...
A machine costs $120,000 today and has an estimated scrap cash value of $20,000 after ten...
A machine costs $120,000 today and has an estimated scrap cash value of $20,000 after ten years. Inflation is 6% per year The effective annual interest rate earned on money invested is 4%. How much money needs to be set aside each year to replace the machine with an identical model ten years from now? Select one: O a. $16,855 O b. $17,700 O C. $17,925 d. $16,235
7. (10 points) A new production machine costs $120,000 and will have a $10,000 salvage value...
7. (10 points) A new production machine costs $120,000 and will have a $10,000 salvage value when disposed of in ten years. Annual repair costs are expected to be $0 in years 1, 2, 3 and 4, $5000 in year 5, $5500 in year 6, $6000 in year 7, $6500 in year 8, $7000 in year 9, and $7500 in year 10. If interest is 10%, what is the equivalent uniform annual cost of the new machine?
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...
10) You buy a machine now for $10,000. The machine can be depreciated using DDB depreciation with 5 years useful life and $2,000 salvage value. Three years later you sell the machine for $1,000....
10) You buy a machine now for $10,000. The machine can be depreciated using DDB depreciation with 5 years useful life and $2,000 salvage value. Three years later you sell the machine for $1,000. The annual net benefit is $8000. The inflation rate is 5% per year. The acceptable real after-tax rate of return after taking inflation into consideration is 10%. Combined incremental tax rate is 50%. Calculate PW of this investment a) $4102 b) $3654 c) $3181 d) $2706...
QUESTION 19 A machine is worth $15.00 new and has a scrap value of $ 1.000....
QUESTION 19 A machine is worth $15.00 new and has a scrap value of $ 1.000. The machine is to be depreciated over a 10-year life. Find the value of the machine after 2 years. A. $13,500 B. $13.000 $14.300 D. $12.200 E. 14.000
One year ago, your company purchased a machine used in manufacturing for $115,000. You have learned...
One year ago, your company purchased a machine used in manufacturing for $115,000. You have learned that a new machine is available that offers many advantages; you can purchase it for $140,000 today. It will be depreciated on a straight-line basis over ten years, after which it has no salvage value. You expect that the new machine will contribute EBITDA (earnings before interest, taxes, depreciation, and amortization) of $60,000 per year for the next ten years. The current machine is...
One year ago, your company purchased a machine used in manufacturing for $90,000. You have learn...
One year ago, your company purchased a machine used in manufacturing for $90,000. You have learned that a new machine is available that offers many advantages; you can purchase it $150,000 today. It will be depreciated on a straight-line basis over ten years, after which it has no salvage value. You expect that the new machine will contribute EBITDA (earnings before interest, taxes, depreciation, and amortization) of $45,000 per year for the next ten years. The current machine is expected...
One year ago, your company purchased a machine used in manufacturing for $ 105 comma 000....
One year ago, your company purchased a machine used in manufacturing for $ 105 comma 000. You have learned that a new machine is available that offers many advantages; you can purchase it for $ 160 comma 000 today. It will be depreciated on a straight-line basis over ten years, after which it has no salvage value. You expect that the new machine will contribute EBITDA (earnings before interest, taxes, depreciation, and amortization) of $ 60 comma 000 per year...
One year ago, your company purchased a machine used in manufacturing for $ 95 comma 000....
One year ago, your company purchased a machine used in manufacturing for $ 95 comma 000. You have learned that a new machine is available that offers many advantages; you can purchase it for $ 160 comma 000 today. It will be depreciated on a straight-line basis over ten years, after which it has no salvage value. You expect that the new machine will contribute EBITDA (earnings before interest, taxes, depreciation, and amortization) of $ 40 comma 000 per year...
One year ago, your company purchased a machine used in manufacturing for $ 95 comma 000....
One year ago, your company purchased a machine used in manufacturing for $ 95 comma 000. You have learned that a new machine is available that offers many advantages; you can purchase it for $ 160 comma 000 today. It will be depreciated on a straight-line basis over ten years, after which it has no salvage value. You expect that the new machine will contribute EBITDA (earnings before interest, taxes, depreciation, and amortization) of $ 35 comma 000 per year...
A machine costs $120,000 today and has an estimated scrap cash value of $20,000 after ten years. Inflation is 6% per year The effective annual interest rate earned on money invested is 4%. How much money needs to be set aside each year to replace the machine with an identical model ten years from now? Select one: O a. $16,855 O b. $17,700 O C. $17,925 d. $16,235
7. (10 points) A new production machine costs $120,000 and will have a $10,000 salvage value when disposed of in ten years. Annual repair costs are expected to be $0 in years 1, 2, 3 and 4, $5000 in year 5, $5500 in year 6, $6000 in year 7, $6500 in year 8, $7000 in year 9, and $7500 in year 10. If interest is 10%, what is the equivalent uniform annual cost of the new machine?
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...
10) You buy a machine now for $10,000. The machine can be depreciated using DDB depreciation with 5 years useful life and $2,000 salvage value. Three years later you sell the machine for $1,000. The annual net benefit is $8000. The inflation rate is 5% per year. The acceptable real after-tax rate of return after taking inflation into consideration is 10%. Combined incremental tax rate is 50%. Calculate PW of this investment a) $4102 b) $3654 c) $3181 d) $2706...
QUESTION 19 A machine is worth $15.00 new and has a scrap value of $ 1.000. The machine is to be depreciated over a 10-year life. Find the value of the machine after 2 years. A. $13,500 B. $13.000 $14.300 D. $12.200 E. 14.000
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