You purchased a machine for $1.09 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 22%. If you sell the machine today (after three years of depreciation) for $773,000, what is your incremental cash flow from selling the machine? Your total incremental cash flow will be $ (Round to the nearest cent.)
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- You purchased a machine for $1.13 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 40%. If you sell the machine today (after three years of depreciation) for $710,000, what is your incremental cash flow from selling the machine?You purchased a machine for $1 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 30%. If you sell the machine right now (after three years of depreciation) for $700,000, what is your incremental (after-tax salvage) cash flow from selling the machine?Last year you purchased a machine for $1M. You want to sell it today for $0.8M and replace it with a new machine that costs $1.2M. Both machines are classified as 20-year property (with depreciation rates of 5% and 9.5% in the first two years). The replacement will increase EBITDA by $100,0000. What are the cash flows at the time of replacement? The tax rate is 35%. Group of answer choices -$452,000 -$400,000 -$152,500 -$347,500 -$300,000
- You firm just bought a new machine. The machine cost $1,800,000. The machine will be operated for 4 years. It will then be sold for its salvage value of $100,000. The CCA rate is 22%. The tax rate is 34%. The required rate of return is 9% compounded annually. The asset class will remain open. What is the present value of the CCA tax shield? Assume the half-year rule is in effect. Your answer should be accurate to two decimal places. Your Answer:You bought a car worth $30,000 that is expected to depreciate at a rate of 12% per year, compounded annually. For how many years will the car be worth more than $10,000?Your firm buys a new equipment for Rs. 80,000. It will give your firm annual savings of Rs. 27,000, for six years, with zero salvage value. It is to be depreciated by the SL method over four years, with placement at the start of the first year. Tax rate will be 12%. However, you decide to sell it early at the end of the third year, for Rs. 23,000. Calculate the after-tax IRR for this?
- What is the expected after - tax cash flow from selling a piece of equipment if Probst purchases the equipment today for $548, 860.00, the tax rate is 39.9 percent, the equipment will be sold in 3 years for $98, 800.00, and the equipment will be depreciated to $72, 600.00 over 12 years using straight - line depreciation? $106, 885.74 (plus or minus $10) $262, 538.29 (plus or minus $10) - $72, 688.20 (plus or minus $10) $230,867.00 (plus or minus $10) None of the above is within $10 of the correct answerHayes, Inc. is considering buying a large piece of equipment for $80,000. Hayes expects that the equipment will last for ten years and then be worthless. During its life, Hayes predicts the equipment will earn $12,000 per year net income before taxes. Hayes is in the 21% tax bracket. What is the expected AFTER-TAX cash flow on this piece of equipment?A milling machine costing $18,000 will be depreciated using 7-year MACRS. The machine will be sold at the end of year 8 for $1000. The combined tax rate is 25%, and the MARR is 10%. What is the present worth of the after-tax cash flows? Submit your spreadsheet. Answer to the nearest whole dollar without the $ sign.
- Your firm purchased machinery for $9.5 million and received immediate 100% bonus depreciation. The project will end after 5 years. If the equipment can be sold for $4.0 million at the completion of the project, and your firm's tax rate is 21%, what is the after-tax cash flow from the sale of the machinery? Note: Enter your answer in millions rounded to 4 decimal places. After-tax cash flow millionsYou can buy a piece of vacant land for $40,000 cash. You plan to hold it for 20 years and then sell it at a profit. During this period, you would pay annual property taxes of $815. You would have no income from the property. (a) Assuming that you want an 8% rate of return, at what net price would you have to sell the land 20 years hence? (b) What is open space conservation and why is it important? What options would you have in selling your property with this in mind?You are interested in purchasing a machine that will save $200,000 per yearbefore taxes. The cost of operating the machine, including maintenance, is $80,000 per year. The machine, which costs $150,000, will be needed for five years after which it will have a salvage value of $25,000. The machine would qualify for 7-year MACRS property. What is the net present value of the cash flows generated from this machine at 15%? The firm's income tax rate is 40%.