PLEASE ANSWER ALL PARTS OF THE QUESTION
Homework Answers
| a | Original cost | $315,000.00 |
| Less Depreciation | ||
| Year 1 | $63,000.00 | |
| Year 2 | $100,800.00 | |
| Book value now | 151200.00 | |
| b | Selling price | 194000.00 |
| Gain | 42800.00 | |
| Tax on gain | 17120 | |
| Net sale proceeds | 176880.00 | |
| c | Initial investment | 328120.00 |
Workings
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PLEASE ANSWER ALL PARTS OF THE
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Calculating initial investment Vastine Medical, Inc., is considering replacing...
Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased...
Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 2 years ago at a cost of $330,000. The system can be sold today for $196,000. It is being depreciated using MACRS and a 5-year recovery period (see the table E) A new computer system will cost $495,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a 40% tax rate on ordinary income...
Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased...
Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 2 years ago at a cost of $318,000. The system can be sold today for $204,000. It is being depreciated using MACRS and a 5-year recovery period (see the table ). A new computer system will cost $498,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a 40% tax rate on ordinary income...
Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased...
Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 3 years ago at a cost of $325,000. The system can be sold today for $199,000. It is being depreciated using MACRS and a 5-year recovery period (see the table ). A new computer system will cost $495,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a 40% tax rate on ordinary income...
Calculating initial investment Vastine Medical Inc, is considering replacing its existing computer system, which was purchased...
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Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased...
Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 2 years ago at a cost of S327,000. The system can be sold today for $210,000. It is being depreciated using MACRS and a 5-year eco e y period see the able A new oomputer system will cost $502 000 p chase and install Replacement o the computer system would not involve any change in net working capital Assume a 40% tax rate on...
P11-11 (similar to) Question Help its existing computer system, which was Calculating initial investment Vastine Medical,...
P11-11 (similar to) Question Help its existing computer system, which was Calculating initial investment Vastine Medical, Inc., is considering replacing i purchased 2 years ago at a cost of $331,000. The system can be sold today for $205,000. It is being depreciated using MACRS and a 5-year recovery period (see the table EB). A new computer system will cost $510,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a...
PLEASE ANSWER ALL PARTS OF THE QUESTION X о Data Table (Click on the icon located...
PLEASE ANSWER ALL PARTS OF THE
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X о Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year 5 years 7 years Recovery year 3 years 10 years 1 33% 20% 14% 10% 18% 2 45% 32% 25% 18% 3 15% 19% 14% 12% 4 7% 12%...
UP PUSS * Data Table (Click on the icon located on the top-right corner of the...
UP PUSS * Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year* Recovery year 3 years 5 years 7 years 33% 20% 14% 45% 32% 25% 15% 18% 7% 12% OWN 10 years 10% 18% 14% 12% 9% 8% 9% 9% 7% 6% Print Done Question Help...
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Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 2 years ago at a cost of $330,000. The system can be sold today for $196,000. It is being depreciated using MACRS and a 5-year recovery period (see the table E) A new computer system will cost $495,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a 40% tax rate on ordinary income...
Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 2 years ago at a cost of $318,000. The system can be sold today for $204,000. It is being depreciated using MACRS and a 5-year recovery period (see the table ). A new computer system will cost $498,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a 40% tax rate on ordinary income...
Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 3 years ago at a cost of $325,000. The system can be sold today for $199,000. It is being depreciated using MACRS and a 5-year recovery period (see the table ). A new computer system will cost $495,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a 40% tax rate on ordinary income...
Calculating initial investment Vastine Medical Inc, is considering replacing its existing computer system, which was purchased 2 years ago at a cost of $331,000. The system can be sold today for $203,000. It is being depreciated using MACRS and a 5-year recovery period (see the table ) A new computer system will cost 5508,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a 40% tax rate on ordinary Income...
Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 2 years ago at a cost of S327,000. The system can be sold today for $210,000. It is being depreciated using MACRS and a 5-year eco e y period see the able A new oomputer system will cost $502 000 p chase and install Replacement o the computer system would not involve any change in net working capital Assume a 40% tax rate on...
P11-11 (similar to) Question Help its existing computer system, which was Calculating initial investment Vastine Medical, Inc., is considering replacing i purchased 2 years ago at a cost of $331,000. The system can be sold today for $205,000. It is being depreciated using MACRS and a 5-year recovery period (see the table EB). A new computer system will cost $510,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a...
PLEASE ANSWER ALL PARTS OF THE
QUESTION
X о Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year 5 years 7 years Recovery year 3 years 10 years 1 33% 20% 14% 10% 18% 2 45% 32% 25% 18% 3 15% 19% 14% 12% 4 7% 12%...
UP PUSS * Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year* Recovery year 3 years 5 years 7 years 33% 20% 14% 45% 32% 25% 15% 18% 7% 12% OWN 10 years 10% 18% 14% 12% 9% 8% 9% 9% 7% 6% Print Done Question Help...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $195,000 and will require $30,500 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages). A $29,000 increase in net working capital will be required to support the new machine. The firm's managers plan to...
Initial investment: Basic calculation Cushing Corporation is considering the pur- chase of a new grading machine to replace the existing one. The existing machine was purchased 3 years ago at an installed cost of $20,000; it was being depreciated under MACRS, using a 5-year recovery period. (See Table 4.2 for the applicable depreciation percentages.) The existing machine is expected to have a usable life of at least 5 more years. The new machine costs $35,000 and requires $5,000 in instal-...
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