Using excel formula to create table
Initial Investment | Macrs Rate Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | |
455000 | 14.29% | 24.49% | 17.49% | 12.49% | 8.93% | 8.92% | 8.30% | |
Depreciation | 0 | 65019.500 | 111429.500 | 79579.500 | 56829.500 | 40631.500 | 40586.000 | 37765.000 |
Formula | 455000*14.29% | 455000*24.49% | 455000*17.49% | 455000*12.49% | 455000*8.93% | 455000*8.92% | 455000*8.30% |
A company is buying machinery for their manufacturing floor that is worth $455,000. The machinery has...
5. 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%
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.
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...
The Balas Manufacturing Company is considering buying an overhead pulley system. The new systern has a purchase price of $150,000, an estimated useful life and MACRS class life of five years, and an estimated salvage value of $10,000. The system is expected to enable the company to economize on electric power usage, labor, and repair costs, as well as to reduce the number of defective products made. A total annual savings of $95,000 will be realized if the new pulley...
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...
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...
An asset was purchased for $600,000, has a salvage value of $10,000, and has a useful life of 7 years. If the asset is placed in service on September 1 {the company’s fiscal year runs from October 1 to September 30}, what is its sum-of-years depreciation charge for the first year of service? What is the depreciation charge for year two of its useful life using MACRS depreciation and given it is a GDS 3-year property class.