D. Yes, the cost of taking the order is the
lost after-tax cash flow of $146,489 from selling the machine.
ANSWER ASAP PLEASE
Homework Answers
Book value of Equipment = Purchase cost – Accumulated Depreciation for 3 years
= 299000*(100%-20%-32%-19.20%) = 86,112
b.Sales Price = $179000
Gain on Sale = 179000-86112
= $92,888
Tax on gain = 92,888*35% = $32,510.8
After tax sales proceeds = 179000-32510.8
= $146,489.2
i.e. $146,489
c.D.Yes, the cost is lost after tax cash flows flows of $146,489
i.e. the opportunity cost
Add Answer to:
D. Yes, the cost of taking the order is the
lost after-tax cash flow of $146,489...
The Jones Company has just completed the third year of a five-year MACRS recovery period for...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $ 299,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $ 175,000 and its tax rate is 35 %, what is the after-tax cash flow from selling it? c. Just before it is about to sell the equipment, Jones receives a new order. It can take the...
The Jones Company has just completed the third year of a five-year MACRS recovery period for...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $295,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $185,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? c. Just before it is about to sell the equipment, Jones receives a new order. It can take the new order if...
The Jones Company has just completed the third year of a five-year MACRS recovery period for...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $298,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $175,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? c. Just before it is about to sell the equipment, Jones receives a new order. It can take the new order if...
The Jones Company has just completed the third year of a five-year MACRS recovery period for...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $305,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $178,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1. a. What is the book value of the equipment? The...
The Jones Company has just completed the third year of a five-year MACRS recovery period for...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $ 303 comma 000$303,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $ 180 comma 000$180,000 and its tax rate is 35 %35%, what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1. a. What is...
After Tax Cash Flows Decades Lab plans to purchase a new machine. The cost of the...
After Tax Cash Flows Decades Lab plans to purchase a new machine. The cost of the machine is $200,000 and is expected to have a useful life of 5 years. Depreciation is calculated using straight line with no salvage value. Savings in cash operating costs are expected to be $60,000 per year. However, additional working capital of $30,000 is required throughout the life of the machine, but will be recovered at the end of the machine's useful life. At the...
The Jones Company has just completed the third year of a five-year MACRS recovery period for...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $299,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $175,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1. a. What is the book value of the equipment? The...
What is the cash flow from assets in year 1? What is the after-tax salvage value...
What is the cash flow from assets in year 1?
What is the after-tax salvage value at the end of year 3?
What is the cash flow from assets in year 3?
Hint: add the after-tax salvage value and the recovery of net
working capital.
Intro Lattice Semiconductor is thinking of buying a new machine for $190,000 that would save it $30,000 per year in production costs. The savings would be constant over the project's 3-year life. The machine falls...
The Jones Company has just completed the third year of a five-year MACRS recovery period for...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $297,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $176,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1.
Assignment 03 - Financial Statements, Cash Flow, and Taxes Asha Yes, I do. Let's see if...
Assignment 03 - Financial Statements, Cash Flow, and Taxes Asha Yes, I do. Let's see if we can make these terms make sense by talking through their meaning and their significance to investors. The term book value has several uses. It can refer to a single asset or the company as a whole. When referring to an individual asset, such as a piece of equipment, book value refers to the asset's , adjusted for any accumulated depreciation or amortization expense....
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $305,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $178,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1. a. What is the book value of the equipment? The...
After Tax Cash Flows Decades Lab plans to purchase a new machine. The cost of the machine is $200,000 and is expected to have a useful life of 5 years. Depreciation is calculated using straight line with no salvage value. Savings in cash operating costs are expected to be $60,000 per year. However, additional working capital of $30,000 is required throughout the life of the machine, but will be recovered at the end of the machine's useful life. At the...
What is the cash flow from assets in year 1?
What is the after-tax salvage value at the end of year 3?
What is the cash flow from assets in year 3?
Hint: add the after-tax salvage value and the recovery of net
working capital.
Intro Lattice Semiconductor is thinking of buying a new machine for $190,000 that would save it $30,000 per year in production costs. The savings would be constant over the project's 3-year life. The machine falls...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $297,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $176,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1.
Assignment 03 - Financial Statements, Cash Flow, and Taxes Asha Yes, I do. Let's see if we can make these terms make sense by talking through their meaning and their significance to investors. The term book value has several uses. It can refer to a single asset or the company as a whole. When referring to an individual asset, such as a piece of equipment, book value refers to the asset's , adjusted for any accumulated depreciation or amortization expense....
Most questions answered within 3 hours.
-
What is the significance of the constraints in a physical model?
What part do distinct constraints...
asked 6 minutes ago -
Consider a 3m x 3m window in a house. The thermal conductivity
is reported to be...
asked 24 minutes ago -
Why has California been the favorite destination of large number
of secondary migrants?
asked 57 minutes ago -
Do not neglect the old for the new. The existing business must
not lose priority simply...
asked 3 hours ago -
Kylie is a single mom with two dependent children,
Tanner, age 7 and Olivia, age 11....
asked 5 hours ago -
Phosphorous + bromine = phosphorous tribromide. If 35.0 g of
bromine are reacted and 27.9 grams...
asked 6 hours ago -
Derive the long wavelength limit of the Planck energy density
distribution
asked 6 hours ago -
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 10 hours ago -
For the year ended December 31, Depot Max’s cost of merchandise
sold was $85,600. Inventory at the...
asked 10 hours ago -
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 10 hours ago -
Write a Python program that stores the data for each
player on the team, and it...
asked 10 hours ago -
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 10 hours ago