A manufacturer of aerospace products purchased five flexible assembly cells for $500,000 each. Delivery and insurance...
Engineering Economy Please solve, for A and B please solve them correct! A company purchases an industrial laser for $176,000. The device has a useful life of 4 years and a salvage value (market value) at the end of those four years of $50,000. The before-tax cash flow is estimated to be $95,000 per year. a. You, of course, suggested applying the 3-year MACRS (GDS) method instead of the straight-line method. Given an effective tax rate of 28%, determine the...
do c. and d. only A global positioning system (GPS) receiver is purchased for $5,500. The IRS informs your company that the useful (class) life of the system is eight years. The expected market (salvage) value is $350 at the end of year eight a. Use the straight line method to calculate depreciation in year three b. Use the 200% declining balance method to calculate the cumulative depreciation through year four c. Use the MACRS method to calculate the cumulative...
A firm can purchase a centrifugal separator (5-year MACRS property) for $21,000. The estimated salvage value is $2,500 after a useful life of six years. Operating and maintenance (O&M) costs for the first year are expected to be $2,100. These O&M costs are projected to increase by $500 per year each year thereafter. The income tax rate is 25% and the MARR is 11% after taxes. What must the uniform annual benefits be for the purchase of the centrifugal separator...
A manufacturer of aerospace products purchased four flexible assembly cells for $540,000 each. Delivery and insurance charges were $35,000, and installation of the cells cost another $47,000. a. Determine the cost basis of the four cells. b. What is the class life of the cells7 c. What is the MACRS depreciation in year seven? d. If the cells are sold to another company for $120,000 each at the end of year seven, how much is the recaptured depreciation? Click the...
Your company just bought a new piece of automotive manufacturing equipment (asset class 13.3), which will be depreciated under MACRS (GDS) with a recovery period of 10 years. Given a cost basis of $91,000, please answer the following questions: a) How much does the asset depreciate in Year 2? b) What is the cumulative depreciation up to and including Year 5? c) What is the book value at the end of Year 7? d) If the asset is sold in...
need help on this. Thank You. Homework: Chapter 7 - Depreciation & After-Tax Analysis Save Score: 0 of 1 pt 5 of 7 (0 complete) HW Score: 0%, 0 of 7 pts Problem 7-19 (algorithmic) Question Help A company purchases an industrial laser for $123,000. The device has a useful life of 4 years and a salvage value (market value) at the end of those four years of $60,000. The before-tax cash flow is estimated to be $90,000 per year....
PLEASE ANSWER WILL RATE A piece of construction equipment (asset class 15.0) was purchased by the Jones Construction Company. The cost basis was $320,000. a. Determine the GDS and ADS depreciation deductions for this property. b. Compute the difference in PW of the two sets of depreciation deductions in Part (a) if i = 10% per year. 5 Click the icon to view the partial listing of depreciable assets used in business. 3 Click the icon to view the GDS...
Problem 3: Disposal of assets Gekko Laboratories had purchased some manufacturing equipment five years ago for a total cost of $3,000,000, and has been depreciating those assets using the MACRS rates (i.e., with a 7-year recovery period). Gekko is currently in the market for newer, more efficient equipment, and has already found a buyer, Fox Pharmaceuticals, who is willing to pay $500,000 for the old equipment. If Gekko Labs, which has an effective tax rate of 35%, disposes of the...