5. A company is buying machinery for their manufacturing floor that is worth $455,000. The machinery...
A company is buying machinery for their manufacturing floor that is worth $455,000. The machinery has a service life of 7 years. Develop a depreciation table for this asset according to MACRS.
A company is buying machinery for their manufacturing floor that is worth $455,000. The machinery has a service life of 7 years. Develop a depreciation table for this asset according to MACRS. Please show all work including formulas used. Thanks!
company is considering buying a new piece of machinery that costs $30,000 and has a value of $8,000 at the end of its 5-year useful life. The machinery nets $5,000 per year in ann venues. The internal rate of return (IRR) on this investment is between A 2%-3% salvage ual 2. : 11%-12%. C. 6%-7%. , D. 13%-14%. E. 4%-5%. company is considering buying a new piece of machinery that costs $30,000 and has a value of $8,000 at the...
A company is considering buying a new piece of machinery that costs $30,000 and has a salvage value of $8,000 at the end of its 5-year useful life. The machinery nets $5,000 per year in annual revenues. MARR = 8%. The internal rate of return (IRR) on this investment is between A. 2%-3%. B. 11%-12% C. 6%-7% D. 13%-14% E. 4%-5%
A company is considering buying a new piece of machinery that costs $30,000 and has a salvage value of $8,000 at the end of its 5-year useful life. The machinery nets $5,000 per year in annual revenues. MARR = 8%. The internal rate of return (IRR) on this investment is between A. 2%-3%. B. 11%-12%. C. 6%-7%. D. 13%-14%. E. 4%-5%. Using the information in the previous question #5, if the company considering purchasing the machine uses a MARR of...
In May 2010, Blackwaler Spring Metal purchased a computanding forming machinery for $750,000. The company expects to use the machinery for 10 years (usetul sfe), at the end of which it will have a $ 200 000 salvad value. Using this information, answer questions (a) through (c) independently (a) If the company used the straight line depreciation method, how much depreciabon deduction for the machinery in 2011? O A. 560,000 OB. 555,000 OC. 565.000 OD. 550.000 double decining Moth b)...
please do #2 and #6 Te=15% Use this scenario for problems 2-6 Oxford Manufacturing company needs to invest in a new air compressor. They have narrowed the choice to two alternatives, A and B. the following financial data has been collected: Model A Model B Investment Cost $25,000 $35.000 Annual Incremental Revenues $18,700 $16,500 Annual O&M Costs $5,600 $3.500 Salvage Value $4,000 Service Life 10 years 10 years Depreciation S-vear 5-year Method MACRS MACRS Assume the After Tax is MARR-10%...
On January 3, 2016, Vaughn Manufacturing purchased machinery. The machinery has an estimated useful life of eight years and an estimated salvage value of $122000. The depreciation applicable to this machinery was $259000 for 2018, computed by the sum-of-the-years'-digits method. The acquisition cost of the machinery was O $1464000. O $1554000 $1676000. $1868000.
5. CAPITAL BUDGETING Golden Flights, Inc., is considering buying some specialized machinery that would enable the company to obtain a six-year government contract for the design and engineering of a futuristic plane. The machinery costs $975,000 and must be destroyed for security reasons at the end of the six-year contract period. The estimated annual operating results of the project are as follows: Revenue from sales under the contract. $975,000 Expenses other than depreciation.............. $560,000 Depreciation (straight-line basis).............................. 162,500 (722,500) Increase...
QUESTION 6 A manufacturing company has purchased three assets: Item Lathe Truck Building Initial cost $43,000 $25,000 $900,000 Book life 12 years 200,000 miles 50 years MACRS class 7 years 5 years 39 years Salvage value $3,000 $2,000 $100,000 Book depreciation DDB Unit production (UP) SL The truck was depreciated by the units-of-production method. Usage of the truck was 22,000 miles, 30,000 and 45,000 miles during the first three years, respectively. Calculate the depreciation stated for each asset...