Our new computer system cost us $121,600. We will outgrow it in five years. When we sell it, we will probably get only 10% of the purchase price. CCA on the computer will be calculated at a 30% rate (Class 10). Calculate the CCA and UCC values for five years. (Round your intermediate calculations and final answers to 2 decimal places. Omit $ sign in your response.) Year 1 2 3 4 5 CCA $ Ending UCC $ $ $ What will be the after-tax proceeds from the sale assuming the asset pool remains open? Assume a 40% tax rate. (Omit $ sign in your response.) After-tax proceeds $

Our new computer system cost us $121,600. We will outgrow it in five years. When we sell it, we will probably get only 10% of the purchase price. CCA on the computer will be calculated at a 30% rate (Class 10). Calculate the CCA and UCC values for five years. (Round your intermediate calculations and final answers to 2 decimal places. Omit $ sign in your response.) Year 1 2 3 4 5 CCA $ Ending UCC $ $ $ What will be the after-tax proceeds from the sale assuming the asset pool remains open? Assume a 40% tax rate. (Omit $ sign in your response.) After-tax proceeds $

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Our new computer system cost us $164,800. We will outgrow it in five years. When we sell it, we will probably get only 10% of the purchase price. CCA on the computer will be calculated at a 30% rate (Class 10). Calculate the CCA and UCC values for five years. (Round your intermediate calculations and final answers to 2 decimal places. Omit $ sign in your response.) Year CCA Ending UCC 1 $ $ 2 $ $ 3 $ $ 4 $ $ 5 $ $ What will be the after-tax proceeds from the sale assuming the asset pool remains open? Assume a 40% tax rate.
Our new computer system cost us $100,000. We will outgrow it in five years. When we sell it, we will probably get only 20% of the purchase price. CCA on the computer will be calculated at a 30% rate (Class 10). Calculate the CCA and UCC values for five years. (Round the final answers to 2 decimal places. Omit $ sign in your response.) Year 1 2 3 4 5 CCA $ 15000 $ 25500 $ 17850 ✔ $ 12495 ✓ $ 8746.50 ✔ Ending UCC 35000 59500 ✓ ✓ 29155 ✓ $ 20408.50 × $ 20163.40 $ $ $ $ 41650 What will be the after-tax proceeds from the sale assuming the asset class is continued? Assume a 40% tax rate. (Round the final answers to 2 decimal places. Omit $ sign in your response.) After-tax proceeds
Elijah Enterprises will need to upgrade the computer system in 8 years. They anticipate the upgrade to cost $112,100. If the discount rate is 11%, what will be the required yearly investment needed to obtain the money for the upgrade?Round your (1+R)^n value to 2 decimal places and use that number for your final amount required rounded to the nearest dollar. Future Value / (1+R)^n = Amount Required / = What would be required if the discount rate was 9%? Future Value / (1+R)^n = Amount Required / =
You are looking at purchasing a new computer for online class. Computer A costs $4000 now, and you expect it will last throughout your program without any upgrades. Computer B costs $2500 now and will need an upgrade at the end of two years, which you expect to be $1700. With 8 percent annual interest, compounded monthly, which is the less expensive alternative and by how much, if they provide the same level of service and will both be worthless at the end of the four years?
You have been promised that if you invest in Asset X you would receive an amount of $1 500 at the end of each year forever. If your required rate of return is 18%, would you purchase this asset if it costs $10 000? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). 10pt A BIUS Paragraph Arial O WORDS POWERED BY TIN A WhatsApp Image.jpeg E MBA661 Gendere.pdf Show all P Type here to search 25°C AQI 85 A@G O 4) 3:18 PM 9/7/2021 tSonicMaster F12 pause break prt sc sysrq delete home pgdn pgup 3 4. 6. backspace num Ik scr Ik E R. Y U [ home pgup H. K enter 4. C B shift& end 立 S'
Elijah Enterprises will need to upgrade the computer system in 6 years. They anticipate the upgrade to cost $106,200. If the discount rate is 13%, what will be the required yearly investment needed to obtain the money for the upgrade?Round your (1+R)^n value to 2 decimal places and use that number for your final amount required rounded to the nearest dollar.
You are considering buying a piece of industrial equipment to automate a part of your production process. This automation will save labor costs by as much as $30,654 per year over 9 years. What is the maximum amount that you would pay for this equipment your interest rate is 10%? (your answer must be rounded off to the nearest dollar, i.e., no decimal places)
Your landscaping company can lease a truck for $9,000 a year (paid at year-end) for 7 years. It can instead buy the truck for $48,000. The truck will be valueless after 7 years. The interest rate your company can earn on its funds is 8%. a. What is the present value of the cost of leasing? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Is it cheaper to buy or lease? c. What is the present value of the cost of leasing if the lease payments are an annuity due, so the first payment comes immediately? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. Is it now cheaper to buy or lease?
Your landscaping company can lease a truck for $8,400 a year (paid at year-end) for 7 years. It can instead buy the truck for $44,000. The truck will be valueless after 7 years. The interest rate your company can earn on its funds is 8%. a. What is the present value of the cost of leasing? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Is it cheaper to buy or lease? c. What is the present value of the cost of leasing if the lease payments are an annuity due, so the first payment comes immediately? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. Is it now cheaper to buy or lease? Your landscaping company can lease a truck for $8,400 a year (paid at year-end) for 7 years. It can instead buy the truck for $44,000. The truck will be valueless after 7 years. The interest rate your company can earn on its funds is 8%. a. What is the present value of the cost of leasing? (Do not round intermediate calculations. Round…
8. Maxmillan Corp is planning to buy a new computer system for $800,000 with a useful life of six years. At the end of six years, the system will have no value. Over the six years the system will save them $240,000 each year for the first three years and $120,000 each year for the last three years. a. What is the NPV of the project if Maxmillan requires a return of 16%? b. What is the IRR for this project? c. At what required rate of return is the project's NPV = 0? d. How are NPV and IRR related? e. At a required rate of return of 16%, is the project acceptable? %3D
You have just sold your car for $50,000, but under the sales agreement, it won't receive the $50,000 until 5 years from today. What is the present value of $50,000 to be received 5 years from today if the discount rate is 7 percent annually? a. $35,445.94 b. $35,270.25 C. $50,000.00 d. $35,649.31 e. $32,500.00
As a result of winning the Gates Energy Innovation Award, you are awarded a growing perpetuity. The first payment will occur in a year and will be for $25,000. You will continue receiving monetary awards annually with each award increasing by 5 percent over the previous award, and these monetary awards will continue forever. If the appropriate interest rate is 13 percent, what is the present value of this award? Question content area bottom Part 1 The present value of the award is $

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