A project using passive heating/cooling design concepts to reduce energy costs requires an investment of $125,000 in equipment (straight-line depreciation with a 10-year depreciable life and $0 salvage value), and $30,000 in labor (not depreciable). At the end of 10 years, the project will be terminated. Assuming a combined tax rate of 34% and after-tax MARR of 15%, determine the project's after-tax present worth.

Consider the following information for year 1 of a project using equipment that had an initial cost of $100,000, and an estimated salvage value of $10,000 at disposal: BTCF = $16,000MACRS 10-year property classState & Federal Combined Income Tax Rate: 45% What is the ATCF for year 1?

Estimate the approximate after-tax rate of return for a project that has a before-tax ROR of 18.6%. Assume the company's effective tax rate is 26% and it uses MACRS depreciation for an asset that has a $40,000 salvage value. The approximate after-tax rate of return is %.

An industrial organization has established an automated assembly line (for $360,000) that will reduce labor costs by $56,000 each year for 10 years. The Internal Revenue Service has ruled that you must depreciate the assembly line on a Straight Line (SL) basis with a depreciable life of 10 years. After-tax MARR is 10% per year. The effective income tax rate is 25%. After 10 years, the machine will have zero salvage value. a) Draw a table showing Before Tax Cash Flow (BTCF) and After-Tax Cash Flow (ATCF). b) Calculate the after-tax PW and IRR. (Use interpolation method to find IRR). Is it feasible?

Weber Drilling Company is considering investing $20M in oil and gas drilling equipment. It is expected that this will improve the firms labor costs by $8M/yr. Assume the firm pays a 35% income tax rate on its taxable income and uses the MACRS depreciation method. Determine the after-tax cash flow from the investment (in a tabular format) and advise with the firm's after- tax hurdle rate (MARR) of 15%/yr determine if the investment is a sound one.

Calculate Lopez Enterprises' gross profit at a CFAT of $2.5 million, $900,000 in expenses, $900,000 in depreciation costs, and a 26.4% effective tax rate.

SGS Golf Academy is evaluating different golf practice equipment. The "Dimple-Max" equipment costs $149,000, has a 4-year life, and costs $9,300 per year to operate. The relevant discount rate is 14 percent. Assume that the straight-line depreciation method is used and that the equipment is fully depreciated to zero. Furthermore, assume the equipment has a salvage value of $21,500 at the end of the project’s life. The relevant tax rate is 22 percent. All cash flows occur at the end of the year. What is the EAC of this equipment? Note: Your answer should be a negative value and indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

A small pump costs $24,000 and has a life of 8 years and a $1,400 SV at that time. If the 150% DB method is used to depreciate the pump, what is the BV at the end of year three? ..... Choose the correct answer below. O A. The BV at the end of year three is $13,624. B. The BV at the end of year three is $3,000. C. The BV at the end of year three is $4,558. D. The BV at the end of year three is $12,873.

An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000, and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years. Compute the depreciation amount in the third year and the BV at the end of the fifth year of life by each of these methods: (7.3, 7.4) a. The SL method. b. The 200% DB method with switchover to SL. c. The GDS. d. The ADS.

its practice question Please give me the correct  answer and show me the work