Firm has spent 50,000$ for a 5- year-life robot that has a projected 20,000$ annual Net...
Firm has spent 50,000$ for a 5- year-life robot that has a projected 20,000$ annual Net Income and annual depreciation of 10,000$ for years 1 through 5. The Firm has a Tax rate of 40%. Determine the after-tax rate of return.
Homework Answers
Net income = 20000
Less depreciation = 10000
PBT = 10000
Less tax @40% = 4000
Pat = 6000
Cash flow is 16000
After tax rate of return is 6000/50000 ×100 = 12%
Add Answer to:
Firm has spent 50,000$ for a 5- year-life robot that has a
projected 20,000$ annual Net...
DEPRECIATION AND INCOME TAXES la) A machine is purchased for $20,000 and has an expected life...
DEPRECIATION AND INCOME TAXES la) A machine is purchased for $20,000 and has an expected life of 5 years. The salvage value at the end of 5 years is $2,000. According to: 1) The Straight Line Depreciation 2) The Sum of the Yea's Digit (SOYD) depreciation, what is the book value of the machine at the end of four years? 1b) A project provides a revenue of $20,000 increasing at $5,000 per year during a five-year investment period. The machine...
5oYD DEPRECIATION A firm has invested & Goiono in machinery with a 5 year useful life....
5oYD DEPRECIATION A firm has invested & Goiono in machinery with a 5 year useful life. The machinery will have no sallayd llalue, as the lost to remolle it will equal its scrop value. The uniform annual benefits from the mach linery are $15,000. For a combined 45 % income tax rate, and sum of years digits the after depreciation, compute of tax rate l I return
Question #1 a) A firm has an asset with a market value of $20,000 and a...
Question #1 a) A firm has an asset with a market value of $20,000 and a book value of $30,000. If its marginal tax rate is 25%, what will the net proceeds from selling the asset be? b) A firm has an asset with a market value of $10,000 and a book value of $4,000. If its marginal tax rate is 25%, what will the net proceeds from selling the asset be? Question #2 A firm believes it can generate...
2) A project utilizing CNCs provides a revenue (income) of $20,000 increasing at $5,000 per year...
2) A project utilizing CNCs provides a revenue (income) of $20,000 increasing at $5,000 per year during a four (4)-year investment period. The machine to be used on the project is purchased for $20,000 and has an expected life of 4 years. he salvage value at the end of 4 years is $4,000. Out-of-pocket expenses are $10,000 for the first year and increases arithmetically at $1,000/yr thereafter, and depreciation deduction for income tax purposes are taken using a Years Digit...
help with 1B 1b) A project provides a revenue of $20,000 increasing at $5,000 per year...
help with 1B
1b) A project provides a revenue of $20,000 increasing at $5,000 per year during a five-year investment period. The machine to be used on the project is purchased for $20,000 and has an expected life of 5 years. The salvage value at the end of 5 years is $2,000. Out-of-pocket expenses are $ 4000 and increases arithmetically at $1,000/yr thereafter, and depreciation deduction for income tax purposes are taken using a Sum of the Years Digit Depreciation...
Butler Corporation is considering the purchase of new equipment costing $39,000. The projected annual after-tax net...
Butler Corporation is considering the purchase of new equipment costing $39,000. The projected annual after-tax net income from the equipment is $1,500, after deducting $13,000 for depreciation. The revenue is to be received at the end of each year. The machine has a useful life of 3 years and no salvage value. Butler requires a 9% return on its investments. The present value of an annuity of $1 for different periods follows: Periods 9% 1 0.9174 2 1.7591 3 2.5313...
please help with question #12.24 without using excel. net present worth of this investment. Contributedby value,...
please help with question #12.24 without using
excel.
net present worth of this investment. Contributedby value, and Assume unit 444 CHAPTER 12: INCOME TAXES FOR CORPORATIONS Mukasa Ssemakula, Wayne State University (b) Explain why the rate of return obtained in part (a) is different from the rate of return obtained in Problem 12-20. 12-25 A firm has invested $400.000 in car- ment. They will depreciate the r-washing equip equipment by 6% (a) Comput (b) Comput MACRS G MACRS, assuming a...
22. An all-equity firm has net ind um has net income of $ 200 deration of...
22. An all-equity firm has net ind um has net income of $ 200 deration of $7.500, and taxes of $2,050. What is the firm's operating cash flow! A) $17.850 B) $21.950 C) $26,250 D) $35,800 E) $36,750 23. year project is expected to generate annual revenues of $114,500, variable, costs of $73,600, and fixed costs of $14,000. The annual depreciation is $3,500 and the tax rate is 34 percent. What is the annual operating cash flow? B) C) $14,301...
Please show any and all work or sub-calculations. A firm spends $29,800 on new equipment that has a 3-year MACRS life,...
Please show any and all work or sub-calculations.
A firm spends $29,800 on new equipment that has a 3-year MACRS life, and a 5-year useful life. The company expects the following net, after-tax accounting income to be earned as a result of owning the asset over its useful life. The firm's WACC is 8%, and its tax rate is 20%. Show all work a) Calculate the Average Accounting Return: t=1 | After-tax annual accounting return 2,800 2 2,900 3 3,200...
Given: vestment: $125,000 Project life: 5 years Self at end of project:$50,000 rouct Selling Price: $10 Labor: $2.00 Material: $1.20 Overhead: $0.80 Annual units sold: 10,000 Working Capital: Fin...
Given: vestment: $125,000 Project life: 5 years Self at end of project:$50,000 rouct Selling Price: $10 Labor: $2.00 Material: $1.20 Overhead: $0.80 Annual units sold: 10,000 Working Capital: Finished Goods Inventory: 2 Months Raw Material inventory: 1 Month Accounts Payable:30 Da Accounts Recelvables: 60 days eoreclation method: 7-year MACRS Income tax rate: 40% MARR: 15% □ Find: Determine the project cash flows, Working Capital,ARR, and NPV
Given: vestment: $125,000 Project life: 5 years Self at end of project:$50,000 rouct Selling...
DEPRECIATION AND INCOME TAXES la) A machine is purchased for $20,000 and has an expected life of 5 years. The salvage value at the end of 5 years is $2,000. According to: 1) The Straight Line Depreciation 2) The Sum of the Yea's Digit (SOYD) depreciation, what is the book value of the machine at the end of four years? 1b) A project provides a revenue of $20,000 increasing at $5,000 per year during a five-year investment period. The machine...
5oYD DEPRECIATION A firm has invested & Goiono in machinery with a 5 year useful life. The machinery will have no sallayd llalue, as the lost to remolle it will equal its scrop value. The uniform annual benefits from the mach linery are $15,000. For a combined 45 % income tax rate, and sum of years digits the after depreciation, compute of tax rate l I return
2) A project utilizing CNCs provides a revenue (income) of $20,000 increasing at $5,000 per year during a four (4)-year investment period. The machine to be used on the project is purchased for $20,000 and has an expected life of 4 years. he salvage value at the end of 4 years is $4,000. Out-of-pocket expenses are $10,000 for the first year and increases arithmetically at $1,000/yr thereafter, and depreciation deduction for income tax purposes are taken using a Years Digit...
help with 1B
1b) A project provides a revenue of $20,000 increasing at $5,000 per year during a five-year investment period. The machine to be used on the project is purchased for $20,000 and has an expected life of 5 years. The salvage value at the end of 5 years is $2,000. Out-of-pocket expenses are $ 4000 and increases arithmetically at $1,000/yr thereafter, and depreciation deduction for income tax purposes are taken using a Sum of the Years Digit Depreciation...
please help with question #12.24 without using
excel.
net present worth of this investment. Contributedby value, and Assume unit 444 CHAPTER 12: INCOME TAXES FOR CORPORATIONS Mukasa Ssemakula, Wayne State University (b) Explain why the rate of return obtained in part (a) is different from the rate of return obtained in Problem 12-20. 12-25 A firm has invested $400.000 in car- ment. They will depreciate the r-washing equip equipment by 6% (a) Comput (b) Comput MACRS G MACRS, assuming a...
22. An all-equity firm has net ind um has net income of $ 200 deration of $7.500, and taxes of $2,050. What is the firm's operating cash flow! A) $17.850 B) $21.950 C) $26,250 D) $35,800 E) $36,750 23. year project is expected to generate annual revenues of $114,500, variable, costs of $73,600, and fixed costs of $14,000. The annual depreciation is $3,500 and the tax rate is 34 percent. What is the annual operating cash flow? B) C) $14,301...
Please show any and all work or sub-calculations.
A firm spends $29,800 on new equipment that has a 3-year MACRS life, and a 5-year useful life. The company expects the following net, after-tax accounting income to be earned as a result of owning the asset over its useful life. The firm's WACC is 8%, and its tax rate is 20%. Show all work a) Calculate the Average Accounting Return: t=1 | After-tax annual accounting return 2,800 2 2,900 3 3,200...
Given: vestment: $125,000 Project life: 5 years Self at end of project:$50,000 rouct Selling Price: $10 Labor: $2.00 Material: $1.20 Overhead: $0.80 Annual units sold: 10,000 Working Capital: Finished Goods Inventory: 2 Months Raw Material inventory: 1 Month Accounts Payable:30 Da Accounts Recelvables: 60 days eoreclation method: 7-year MACRS Income tax rate: 40% MARR: 15% □ Find: Determine the project cash flows, Working Capital,ARR, and NPV
Given: vestment: $125,000 Project life: 5 years Self at end of project:$50,000 rouct Selling...
Most questions answered within 3 hours.
-
Industry: Telecommunications in India
Here, you need to discuss the sources of the growth pattern
and...
asked 58 minutes ago -
Hydrobromic acid
dissolves solid iron according to the followiaung reaction:
Fe(s)+2HBr(aq)→
FeBr2(aq)+ H2(g)
Part A. What...
asked 2 hours ago -
Verify the following vector identity in SPHERICAL
COORDINATES.
div(curl(A)) = 0
asked 4 hours ago -
The work function (Φ) for a metal is 7.50×10-19 J.
What is the longest wavelength (nm)...
asked 5 hours ago -
1. Would the following procedural changes cause the
calculated mass percent Ni2+ ion in Ni(NH3)nCl2 to...
asked 6 hours ago -
1. Why does the voltage of the capacitor vary with frequency?
where does this missing voltage...
asked 7 hours ago -
p p please write each step out clearly
3. A manager of a company is considering...
asked 6 hours ago -
On October 1, Ebony Ernst organized Ernst Consulting; on October
3, the owner contributed $83,540 in...
asked 8 hours ago -
A.)As an electron moves through a region of space, its speed
decreases from 9.60 × 106...
asked 8 hours ago -
In java with the netbeans program do:
Through object programming
Create a class "ContadorP", which is...
asked 8 hours ago -
Pattern Corporation acquired all of Science
Company's outstanding stock on January 1, 2016 for $600,000 cash....
asked 8 hours ago -
Here are all accounts Tyler Co. maintains.
Tax expenses $4,750
Common stocks $48,840
SG&A expenses $2,500...
asked 8 hours ago