ZuoTi.Pro
Question

BW Construction Materials purchased a machine six years ago at a cost of $810,000. The machine...

BW Construction Materials purchased a machine six years ago at a cost of $810,000. The machine is being depreciated using the straight-line method over ten years. The tax rate is 25 percent and the discount rate is 10 percent. If the machine is sold today for $375,000, what will the aftertax salvage value be?

$350,040

$321,460

$384,500

$362,250

$294,570
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)

All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
BW Construction Materials purchased a machine six years ago at a cost of $810,000. The machine...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • Dallas Engineering purchased a machine five years ago at a cost of $484,000. The machine is...

    Dallas Engineering purchased a machine five years ago at a cost of $484,000. The machine is being depreciated using the straight-line method over eight years. The tax rate is 25 percent and the discount rate is 13 percent. If the machine is sold today for $209,000, what will the aftertax salvage value be? $202,125 $227,485 $214,500 $194,000 $186,775

  • Farris Industrial purchased a machine five years ago at a cost of $164,900. The machine is...

    Farris Industrial purchased a machine five years ago at a cost of $164,900. The machine is being depreciated using the straight-line method over eight years. The tax rate is 21 percent and the discount rate is 14 percent. If the machine is sold today for $42,500, what will the aftertax salvage value be? A. $31,794.72 B. $49,268.13 C. $38,439.13 D. $46,560.88 Kustom Cars purchased a fixed asset two years ago for $39,000 and sold it today for $19,000. The assets...

  • Power Manufacturing has equipment that it purchased 7 years ago for $1,950,000. The equipment was used...

    Power Manufacturing has equipment that it purchased 7 years ago for $1,950,000. The equipment was used for a project that was intended to last for 9 years. However, due to low demand, the project is being shut down. The equipment was depreciated using the straight-line method and can be sold for $280,000 today. The company's tax rate is 40 percent. What is the aftertax salvage value of the equipment? rev: 06_18_2018_QC_CS-129446 $310,667 $341,333 $218,667 $392,000 $280,000

  • Power Manufacturing has equipment that it purchased 6 years ago for $2,700,000. The equipment was used...

    Power Manufacturing has equipment that it purchased 6 years ago for $2,700,000. The equipment was used for a project that was intended to last for 8 years. However, due to low demand, the project is being shut down. The equipment was depreciated using the straight-line method and can be sold for $430,000 today. The company's tax rate is 40 percent. What is the aftertax salvage value of the equipment? Multiple Choice O $602,000 O $430,000 O $332,000 O $479,000 O...

  • please ignore the selected answer! Power Manufacturing has equipment that it purchased 6 years ago for...

    please ignore the selected answer! Power Manufacturing has equipment that it purchased 6 years ago for $2.500,000. The equipment was used for a project that was intended to last for 8 years. However, due to low demand, the project is being shut down. The equipment was depreciated using the straight-line method and can be sold for $390,000 today. The company's tax rate is 35 percent. What is the aftertax salvage value of the equipment? Multiple Choice $307750 $390,000 $526,500 $43125...

  • One year​ ago, your company purchased a machine used in manufacturing for $ 105 000. You...

    One year​ ago, your company purchased a machine used in manufacturing for $ 105 000. You have learned that a new machine is available that offers many​ advantages; you can purchase it for $ 155 000 today. It will be depreciated on a​ straight-line basis over ten years and has no salvage value. You expect that the new machine will produce a gross margin​ (revenues minus operating expenses other than​ depreciation) of $ 40 000 per year for the next...

  • One year​ ago, your company purchased a machine used in manufacturing for $ 105 000. You...

    One year​ ago, your company purchased a machine used in manufacturing for $ 105 000. You have learned that a new machine is available that offers many​ advantages; you can purchase it for $ 155 000 today. It will be depreciated on a​ straight-line basis over ten years and has no salvage value. You expect that the new machine will produce a gross margin​ (revenues minus operating expenses other than​ depreciation) of $ 45 000 per year for the next...

  • One year​ ago, your company purchased a machine used in manufacturing for $90,000. You have learn...

    One year​ ago, your company purchased a machine used in manufacturing for $90,000. You have learned that a new machine is available that offers many​ advantages; you can purchase it $150,000 today. It will be depreciated on a​ straight-line basis over ten​ years, after which it has no salvage value. You expect that the new machine will contribute EBITDA​ (earnings before​ interest, taxes,​ depreciation, and​ amortization) of $45,000 per year for the next ten years. The current machine is expected...

  • Power Manufacturing has equipment that it purchased 5 years ago for $2,450,000. The equipment was used...

    Power Manufacturing has equipment that it purchased 5 years ago for $2,450,000. The equipment was used for a project that was intended to last for 7 years. However, due to low demand, the project is being shut down. The equipment was depreciated using the straight-line method and can be sold for $380,000 today. The company's tax rate is 34 percent. What is the after-tax salvage value of the equipment? Multiple Choice $509,200 $488,800 $380,000 $271,200

  • One year​ ago, your company purchased a machine used in manufacturing for $115,000. You have learned...

    One year​ ago, your company purchased a machine used in manufacturing for $115,000. You have learned that a new machine is available that offers many​ advantages; you can purchase it for $140,000 today. It will be depreciated on a​ straight-line basis over ten​ years, after which it has no salvage value. You expect that the new machine will contribute EBITDA​ (earnings before​ interest, taxes,​ depreciation, and​ amortization) of $60,000 per year for the next ten years. The current machine is...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT