Give me perfect answer with explanation Saved What is the net investment for Nathan Harness Services who require a pitting machine that will cost $35,000including installation? The machine replaces an old machine that cost $5,000 when purchased five years ago. The oldmachine has been fully depreciated but has a market value of $6,000. Assume the marginal tax rate is 40 percent.Question 18 options: $34, 505 $31,400 $29,000 $32,600

Given information: New Machine cost = $35,000 As the old machine has been fully depreciated so the…

Answered: Saved What is the net investment for…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter10: Project Cash Flows And Risk

Section: Chapter Questions

Problem 5PROB

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i will 10 upvotes urgent Your firm needs a computerized machine tool lathe which costs $56,000 and requires $12,600 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 35 percent and a discount rate of 12 percent. Calculate the depreciation tax shield for this project in year 3.
Problem 3 A piping contractor is considering the purchase of a number of pipe laying machines for a project that will last for 6 years. Each machine will cost $ 50,000.00 and have no salvage value at the end of the project. In determining whether to make this purchase, straight line deprecation can be used and an annual income tax on profits of of 34%, and an after-tax MARR is 8%. What is the minimum annual net benefit before taxes that must be generated by the each machine in order to justify its purchase? Answer:
Saved mework 1 Avignon Restaurant is considering the purchase of a $10,100 soufflé maker. The soufflé maker has an economic life of four years and will be fully depreciated by the straight-line method. The machine will produce 2,050 soufflés per year, with each costing $2.45 to make and priced at $5.30. Assume that the discount rate is 14 percent and the tax rate is 21 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV Should the company make the purchase? O Yes O No
Question A .A machine is purchased and depreciated over four years. The tax rate is 21% and the project's cost of capital is 10.50%. What is the after tax salvage value if the machine is purchased today for $690,000 and sold for $175,000 after three years? Multiple Choice $138,250 $174,475 $189,450 $174,900 Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line
3. Problem 12.03 (After-Tax Salvage Value) M eBook Karsted Air Services is now in the final year of a project. The equipment originally cost $21 million, of which 100% has been depreciated. Karsted can sell the used equipment today for $8 million, and its tax rate is 25%. What is the equipment's after-tax salvage value? Write out your answer completely. For example, 13 million should be entered as 13,000,000. Round your answer to the nearest dollar. $
Project Section 1: You are considering buying an industrial equipment whose price is 445000. The equipment is expected to earn an annual revenue of $150,000. The equipment will be depreciated under MACRS as a five-year recovery property. The equipment will be used for seven years, at the end of which time, you can sell it for $50,000. Your company's marginal tax rate is 35% over the project period. Perform the following: a) Determine the net after-tax cash flows for each period over the project life. b) Net present worth assuming company MARR 15% . c) Annual equivalent cash flow company MARR 15%. = =
6.1 Calculating Project NPV Paul Restaurant is considering the purchase of a $9,300 soufflé maker. The soufflé maker has an economic life of five years and will be fully depreciated by the straight-line method. The machine will produce 1,400 soufflés per year, with each costing $1.97 to make and priced at $4.95. The discount rate is 14 percent and the tax rate is 21 percent. Should the company make the purchase?
Hide student question Time Left : 01:59:18 Student question ABC Inc. is considering a new project whose data are shown below. The required equipment has a 3-year tax life and the accelerated rates for such property are 33%, 45%, 15%, and 7% for Years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10-year expected operating life. What is the project's Year 4 cash flow? Equipment cost (depreciable basis) $70,000 Sales revenues, each year $42,500 Operating costs (excl. depreciation) $25,000 Tax rate 35.0% Group of answer choices $11,814 $12,436 $13,090 $13,745 $14,432
Q. 3 The cost of a replacement packaging machine is $95,000. The machine is anticipated to reduce the packaging costs by $20 per parcel. The_purchasing company is expected to yield an output of 25,000 parcels per year. The salvage value of the machine is anticipated to be $23,000 at the end of 10 years. What is the present worth of the machine if the after-tax MARR is 10%, the CCA rate is 20%, and the tax rate is 40%?
Question #5: a. You have 2 investment choices. The Warlight machine costs $10,000 and has a salvage of $5,500 at the end of the second year. The Bridgedale machine costs $4,620 more than the Warlight but has a slightly better performance yield N Warlight Bridgedale 0 -$10,000 -$14,000 1 $6,000 $9,000 2 $5,500 $8,000 If your MARR is 18%, choose which program should be accepted using incremental investment analysis the following if (SHOW YOUR WORK BELOW): a. C. i* for the incremental investment = 13%, then the Bridgedale is preferred b. i* for the incremental investment = 25%, then the Bridgedale is preferred i* for the incremental investment = 21%, then the Bridgedale is preferred d. i* for the incremental investment = 13%, then the Warlight is preferred i* for the incremental investment = 25%, then the Warlight is preferred i* for the incremental investment = 21%, then the Warlight is preferred e. f.
Heip Save & Exit Submit Homer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would resuit in an annual increase in net Income after tax of $153,000. The equipment will have an initial cost of $510,000 and have a 5-year life, If the salvage vaiue of the equipment is estimated to be $27,000, what is the annual net cash flow? Multiple Choice 12 $126,000 $56,400 $249.600 $180.000
ok nt ences A new electronic process monitor costs $990,000. This cost could be depreciated at 30% per year (Class 10). The monitor would actually be worthless in five years. The new monitor would save $450,000 per year before taxes and operating costs. If we require a 15% return, what is the NPV of the purchase? Assume a tax rate of 40%. (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV

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