Simon Co. is evaluating different equipment. Machine A costs $55,000 per year has a five year...
Simon Co. is evaluating different equipment. Machine A costs $55,000 per year has a five year life, and costs $15,000 pear year to operate. The machine will be depreciated using straight line and the relevant discount rate is 10%. The machine will have a salvage value of $8,500 at the end of the projects life. The firm has a tax rate of 21%.
Calculate the operating cash flow in year 1. (Enter a negative value)
Homework Answers
Add Answer to:
Simon Co. is evaluating different equipment. Machine A costs
$55,000 per year has a five year...
Einstein Inc. is evaluating different equipment. Machine A costs $55,000 per year has a five year life, and costs $15,00...
Einstein Inc. is evaluating different equipment. Machine A costs $55,000 per year has a five year life, and costs $15,000 pear year to operate. The machine will be depreciated using straight line and the relevant discount rate is 10%. The machine will have a salvage value of $8,500 at the end of the projects life. The firm has a tax rate of 21%. a.) What is the operating cash flow in year 1? (Enter a negative value) b.) What is...
SGS Golf Academy is evaluating different golf practice equipment. The "Dimple-Max" equipment costs $106,000, has a 4-yea...
SGS Golf Academy is evaluating different golf practice equipment. The "Dimple-Max" equipment costs $106,000, has a 4-year life, and costs $9,800 per year to operate. The relevant discount rate is 10 percent. Assume that the straight-line depreciation method is used and that the equipment is fully depreciated to zero. Furthermore, assume the equipment has a salvage value of $24,000 at the end of the project’s life. The relevant tax rate is 39 percent. All cash flows occur at the end...
Bridgton Golf Academy is evaluating new golf practice equipment. The "Dimple-Max" equipment costs $128,000, has a...
Bridgton Golf Academy is evaluating new golf practice equipment. The "Dimple-Max" equipment costs $128,000, has a 4-year life, and costs $11,600 per year to operate. The relevant discount rate is 10 percent. Assume that the straight-line depreciation method is used and that the equipment is fully depreciated to zero. Furthermore, assume the equipment has a salvage value of $9,500 at the end of the project’s life. The relevant tax rate is 25 percent. All cash flows occur at the end...
You are evaluating two different milling machines to replace your current aging machine. Machine A costs...
You are evaluating two different milling machines to replace your current aging machine. Machine A costs $265,135, has a three-year life, and has pretax operating costs of $62,168 per year. Machine B costs $429,251, has a five-year life, and has pretax operating costs of $33,588 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $35,488. Your tax rate is 34 % and your discount rate is 10 %....
You are evaluating two different silicon wafer milling machines. The Techron I costs $219,000, has a...
You are evaluating two different silicon wafer milling machines. The Techron I costs $219,000, has a three-year life, and has pretax operating costs of $56,000 per year. The Techron Il costs $385,000, has a five-year life, and has pretax operating costs of $29,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $33,000. If your tax rate is 34 percent and your discount rate is 8 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $237,000, has a...
You are evaluating two different silicon wafer milling machines. The Techron I costs $237,000, has a three-year life, and has pretax operating costs of $62,000 per year. The Techron Il costs $415,000, has a five-year life, and has pretax operating costs of $35,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $39,000. If your tax rate is 34 percent and your discount rate is 8 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $282,000, has a...
You are evaluating two different silicon wafer milling machines. The Techron I costs $282,000, has a three-year life, and has pretax operating costs of $77,000 per year. The Techron I costs $490,000, has a five-year life, and has pretax operating costs of $44,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $54,000. If your tax rate is 23 percent and your discount rate is 10 percent, compute...
You are is considering replacing a five-year-old machine that originally cost $50,000. It was being depreciated...
You are is considering replacing a five-year-old machine that originally cost $50,000. It was being depreciated using straight-line to an expected salvage value of zero over its original 10-year life and could now be sold for $40,000. The replacement machine would cost $190,000 and have a five-year expected life. It would be depreciated using the MACRS 5-year class life. The actual expected salvage value of this machine after five years is $20,000. The new machine is expected to operate much...
Beryl's Iced Tea currently rents a bottling machine for $ 55 comma 000$55,000 per year, including...
Beryl's Iced Tea currently rents a bottling machine for $ 55 comma 000$55,000 per year, including all maintenance expenses. It is considering purchasing a machine instead, and is comparing two options: A. Purchase the machine it is currently renting for $ 155 comma 000$155,000. This machine will require $ 21 comma 000$21,000 per year in ongoing maintenance expenses. B. Purchase a new, more advanced machine for $ 260 comma 000$260,000. This machine will require $ 15 comma 000$15,000 per year...
You are evaluating two different silicon wafer milling machines. The Techron I costs $219,000, has a three-year life, and has pretax operating costs of $56,000 per year. The Techron Il costs $385,000, has a five-year life, and has pretax operating costs of $29,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $33,000. If your tax rate is 34 percent and your discount rate is 8 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $237,000, has a three-year life, and has pretax operating costs of $62,000 per year. The Techron Il costs $415,000, has a five-year life, and has pretax operating costs of $35,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $39,000. If your tax rate is 34 percent and your discount rate is 8 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $282,000, has a three-year life, and has pretax operating costs of $77,000 per year. The Techron I costs $490,000, has a five-year life, and has pretax operating costs of $44,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $54,000. If your tax rate is 23 percent and your discount rate is 10 percent, compute...
Most questions answered within 3 hours.
-
A shot-putter throws the shot with a horizontal velocity of 10
m/s and a
vertical velocity...
asked 6 minutes ago -
Mildred sells industrial-sized refrigeration units. Her
prospective buyer's face looks tense, and his forehead is wrinkled....
asked 8 minutes ago -
Clark Heter is an industrial engineer at Lyons Products. He
would like to determine whether there...
asked 1 hour ago -
3. Use a text editor to create a comma-delimited file of user
IDs and passwords. Revise...
asked 50 minutes ago -
Jensen and Associates has a projected balance
sheet that includes the following accounts. What is the...
asked 23 minutes ago -
implement a doubly-linked list in C. Each node in the linked list should contain a string,...
asked 46 minutes ago -
What are some best practices and things to avoid when developing
a PowerPoint presentation or file
asked 49 minutes ago -
Consider the ways that the government can get involved in
economic issues. What role do you...
asked 24 minutes ago -
Sodium carbonate is added to the tea mixture, in part, to form
the sodium salt of...
asked 47 minutes ago -
he plant started to purify its wastewater before discharging it
into the lake. How long will...
asked 1 hour ago -
Thiazyl fluoride, F3NS is a colourless gas. Using concepts of
electronegativity, formal charge etc. determine the...
asked 1 hour ago -
1. Why is an explicit inflation target a bad policy?
2. MV=PQ If M grows, then...
asked 42 minutes ago