Homework Answers
Option E. B through d is correct option. This is because .
Market price of land is opportunity cost, salvage value of old
plant is a cash inflow and depreciation of new plant helps in
gaining cash flow due to depreciation tax shield
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A firm is considering replacing a fully-depreciated old plant with a new plant on vacant land...
Q4) Your corporation is considering replacing equipment. The old machine is fully depreciated and cost $61,745.00...
Q4) Your corporation is considering replacing equipment. The old machine is fully depreciated and cost $61,745.00 seven years ago. The old equipment currently has no market value. The new equipment cost $82,723.00. The new equipment will be depreciated to zero using straight-line depreciation for the four- year life of the project. At the end of the project the equipment is expected to have a salvage value of $22,429.00. The new equipment is expected to save the firm $29,214.00 annually by...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $201,000 and will require $29,400 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages). A $30,000 increase in net working capital will be required to support the new machine. The firm's managers plan to...
Please solve thanks Q4) Your corporation is considering replacing older equipment. The old machine is fully...
Please solve thanks
Q4) Your corporation is considering replacing older equipment. The old machine is fully depreciated and cost $69,818.00 seven years ago. The old equipment currently has no market value. The new equipment cost $50,217.00. The new equipment will be depreciated to zero using straight-line depreciation for the four- year life of the project. At the end of the project the equipment is expected to have a salvage value of $36,150.00. The new equipment is expected to save the...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $206,000 and will require $29,200 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages). A $20,000 increase in net working capital will be required to support the new machine. The firm's managers plan to...
Terminal cash flow Replacement decision Russell Industries is considering replacing a fully depreciated machine that has...
Terminal cash flow Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $207,000 and will require $30.800 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table E for the applicable depreciation percentages). A S21,000 increase in net working capital will be required to support the new machine. The firm's managers...
QUESTION 4: Alset Limited is considering replacing the old widget maker with the new one at...
QUESTION 4: Alset Limited is considering replacing the old widget maker with the new one at its plant in Windsor. The old widget maker has a current market value of $20,000,000 and zero salvage value after 10 years. The new widget maker will generate incremental pre tax cash flow of $15,000,000 per year for 10 years and will have zero salvage value after 10 years of use. The widget maker will be depreciated at a CCA rate of 30%. Alset...
QUESTION 4: Alset Limited is considering replacing the old widget maker with the new one at...
QUESTION 4: Alset Limited is considering replacing the old widget maker with the new one at its plant in Windsor. The old widget maker has a current market value of $20,000,000 and zero salvage value after 10 years. The new widget maker will generate incremental pre tax cash flow of $15,000,000 per year for 10 years and will have zero salvage value after 10 years of use. The widget maker will be depreciated at a CCA rate of 30%. Alset...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $193,000 and will require $30,800 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages). A $25,000 increase in net working capital will be required to support the new machine. The firm's managers plan to...
You are is considering replacing a five-year-old machine that originally cost $50,000. It was being depreciated...
You are is considering replacing a five-year-old machine that originally cost $50,000. It was being depreciated using straight-line to an expected salvage value of zero over its original 10-year life and could now be sold for $40,000. The replacement machine would cost $190,000 and have a five-year expected life. It would be depreciated using the MACRS 5-year class life. The actual expected salvage value of this machine after five years is $20,000. The new machine is expected to operate much...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $195,000 and will require $30,500 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages). A $29,000 increase in net working capital will be required to support the new machine. The firm's managers plan to...
Q4) Your corporation is considering replacing equipment. The old machine is fully depreciated and cost $61,745.00 seven years ago. The old equipment currently has no market value. The new equipment cost $82,723.00. The new equipment will be depreciated to zero using straight-line depreciation for the four- year life of the project. At the end of the project the equipment is expected to have a salvage value of $22,429.00. The new equipment is expected to save the firm $29,214.00 annually by...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $201,000 and will require $29,400 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages). A $30,000 increase in net working capital will be required to support the new machine. The firm's managers plan to...
Please solve thanks
Q4) Your corporation is considering replacing older equipment. The old machine is fully depreciated and cost $69,818.00 seven years ago. The old equipment currently has no market value. The new equipment cost $50,217.00. The new equipment will be depreciated to zero using straight-line depreciation for the four- year life of the project. At the end of the project the equipment is expected to have a salvage value of $36,150.00. The new equipment is expected to save the...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $206,000 and will require $29,200 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages). A $20,000 increase in net working capital will be required to support the new machine. The firm's managers plan to...
Terminal cash flow Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $207,000 and will require $30.800 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table E for the applicable depreciation percentages). A S21,000 increase in net working capital will be required to support the new machine. The firm's managers...
QUESTION 4: Alset Limited is considering replacing the old widget maker with the new one at its plant in Windsor. The old widget maker has a current market value of $20,000,000 and zero salvage value after 10 years. The new widget maker will generate incremental pre tax cash flow of $15,000,000 per year for 10 years and will have zero salvage value after 10 years of use. The widget maker will be depreciated at a CCA rate of 30%. Alset...
QUESTION 4: Alset Limited is considering replacing the old widget maker with the new one at its plant in Windsor. The old widget maker has a current market value of $20,000,000 and zero salvage value after 10 years. The new widget maker will generate incremental pre tax cash flow of $15,000,000 per year for 10 years and will have zero salvage value after 10 years of use. The widget maker will be depreciated at a CCA rate of 30%. Alset...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $193,000 and will require $30,800 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages). A $25,000 increase in net working capital will be required to support the new machine. The firm's managers plan to...
Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $195,000 and will require $30,500 in installation costs. It will be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages). A $29,000 increase in net working capital will be required to support the new machine. The firm's managers plan to...
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