Perform a present worth (PW)-based evaluation of the two alternatives below using a spreadsheet. The after-tax minimum acceptable rate of return (MARR) is 8% per year, Modified Accelerated Cost Recovery System (MACRS) depreciation applies, and Te = 40%. The (GI-OE) estimate is made for the first 3 years; it is zero in year 4 when each asset is sold.
Alternative | X | Y |
---|---|---|
First Cost, $ | -8,000 | -13,000 |
Salvage Value, Year 4, $ | 0 | 2,000 |
GI-OE, $ per Year | 3,500 | 5,000 |
Recovery Period, Years | 3 | 3 |
The PW for alternative X is determined to be $___________
The PW for alternative Y is determined to be $___________
Alternative __________ is selected.
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Perform a present worth (PW)-based evaluation of the two alternatives below using a spreadsheet. The after-tax...
Compare two alternatives, A and B. on the basis of a present worth evaluation using /= 10% per year and a study period of 8 years. Alternative A B First Cost $-19,000 $-46,000 Annual Operating Cost $-6,000 $-10,000 Overhaul in Year 4 $0 $-3,850 Salvage Value $1,200 $6,200 Life 8 years 4 years The present worth of alternative A is $ and that of alternative B is $ Alternative (Click to select) is selected.
Problem 17.035: Calculate tax liability in yr2 An in-place machine with B $175,000 was depreciated by using Modified Accelerated Cost Recovery System (MACRS) over a 3-year period. The machine was sold for $60,000 at the end of year 2 when the company decided to import the item that required the use of the machine. In year 2, gross income (GI) $1 million and operating expenses (OE) $500,000. Determine the tax liability in year 2 if Te 35% The tax liability...
An in-place machine with B = $160,000 was depreciated by using Modified Accelerated Cost Recovery System (MACRS) over a 3-year period. The machine was sold for $60,000 at the end of year 2 when the company decided to import the item that required the use of the machine. In year 2, gross income (GI) = $1 million and operating expenses (OE) = $500,000. Determine the tax liability in year 2 if Te = 35%. The tax liability in year 2...
3. Use a spreadsheet for evaluation of the multiple alternatives provided below. Use incremental B/C analysis. These alternatives are relative to the application of nanotechnology and the use of thin-film solar panels applied to houses to reduce the dependency on fossil-fuel generated electrical energy. A community of 400 new all- electric public housing units will utilize the technology as anticipated proof that significant reductions in overall utility costs can be attained over the expected 15-year life of the housing. The...
For the below ME alternatives, which machine should be selected based on the PW analysis. MARR=10%.Machine AMachine BMachine CFirst cost, $ 15000 30000 10,360Annual cost, $/year 8,320 6,000 4,000Salvage value, $ 4,000 5,000 1,000Life, years 362Answer the below questions :C- PW for machine C =
which of the alternatives is the lowest cost based on present worth (PW)? Alternative A has initial cost of $5, daily maintence of 0.25% and salvage value of .75 at the end of two weeks. The interest for Alt A is .25%. Alt B has initial cost of 5.50, weekly maintence of 1.50 an salvage value of 1.00 at the end of three weeks. the interest rate of AltB is 1 3/4% per week.
2. Elias wants to perform an after-tax evaluation of equivalent methods to electrostatically remove airbome particulate matter from clean rooms used to package liquid pharmaceutical products. Using the information shown, MACRS depreciation with n= 3 year, a 5-year study period, after-tax MARR = 7% per year, a T. of 34% and a spreadsheet, he obtained the results AWA - S-2176 and AW8 - $3545. Any tax effects when the equipment is salvaged were neglected. Method B was the better method....
2. Elias wants to perform an after-tax evaluation of equivalent methods to electrostatically remove airbome particulate matter from clean rooms used to package liquid pharmaceutical products. Using the information shown, MACRS depreciation with n= 3 year, a 5-year study period, after-tax MARR = 7% per year, a T. of 34% and a spreadsheet, he obtained the results AWA - S-2176 and AW8 - $3545. Any tax effects when the equipment is salvaged were neglected. Method B was the better method....
3. Two alternative projects have the following data in Table 1. Use the present worth method (PW) to determine which is the better alternative assuming "repeatability" and based on using GDS with depreciation, an income-tax rate of 40%, and an after-tax MARR of 10%. The following are relevant data: (20%) Table 1 Project B Project A S30,000 $20,000 First Cost MACRS Class Life 7years 12 Years 5 years 8 Years Useful Life $4000 Terminal MV $220,000 $200,000 Annual Receipts Annual...
Problem 17.035: Calculate tax liability in yr2 I've looked at and attempted probably 20 solutions on here, and not one person has solved it. Please save me. Problem 17.035: Calculate tax liability in yr2 An in-place machine with B= $105,000 was depreciated by using Modified Accelerated Cost Recovery System (MACRS) over a 3- year period. The machine was sold for $60,000 at the end of year 2 when the company decided to import the item that required the use of...