At the end of the economic life of a machine, the salvage value is $1,500 while the book value is $800. Suppose that the marginal tax rate is 40%, what is the after-tax salvage value?
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At the end of the economic life of a machine, the salvage value is $1,500 while the book value is $800. Suppose that the marginal tax rate is 40%, what is the after-tax salvage value?
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- PLEASE USE EXCEL AND SHOW FORMULAS Six years ago, a company purchased $30,000 of equipment. The equipment has just been sold for $5000. The equipment was depreciated using 50% bonus depreciation / 50% MACRS (using a 5-year recovery period). The actual savings due to the purchase of the equipment is shown below. The firm's MARR is 12% and it's tax rate is 25%. What is the after-tax present worth of the investment? Year 1 2 3 4 5 6 Savings 5000 6000 7000 7000 4000 3000date period In Santa Barbara, the sales tax is 7.55%. What would be the final cost of a surfboard if it was being sold for $1,200 ?Compute the interest paid on a 4-year lease for a $27,671 car if the annual rate of depreciation is 12% and the lease's annual interest rate is 4.3%.
- Compute the interest paid on a 3-year lease for a $26,738 car if the annual rate of depreciation is 16% and the lease's annual interest rate is 4.8%. Round your answer to the nearest dollar.A crane rental company has acquired a new heavy-duty crane for $280,000. The company calculates depreciation on this equipment on the basis of number of rentals per year, and the salvage value of the crane at the end of its 12-year life is $40,000. If the crane is rented an average of 133 days per year, what is the depreciation rate per rental? The depreciation is per day of rent. (Round to the nearest dollar.)Solve correctly in excel Six years ago, a company purchased $30,000 of equipment. The equipment has just been sold for $5000. The equipment was depreciated using 50% bonus depreciation / 50% MACRS (using a 5-year recovery period). The actual savings due to the purchase of the equipment is shown below. The firm's MARR is 12% and it's tax rate is 25%. What is the after-tax present worth of the investment? Year 1 2 3 4 5 6 Savings 5000 6000 7000 7000 4000 3000
- Laila’s Surveying Inc. had revenues of $1.5 million in 2016. Expenses totaled $900,000. What was her net profit (or loss) if the tax rate is 38%?A machine shop purchased 10 years ago a milling machine for $60,000. A straight line depreciation reserve had been provided on a 20 year life of a machine. The owner of the machine shop desires to replace the old milling machine with a modern unit of many advantages costing $100,000. It can sell the old unit for $20,000. How much new capital will be required for the purchase?Assume that a piece of equipment cost $5,000 and had accumulated depreciation of $3,000. What is the book value of the equipment? Is the book value equal to the fair market value of the equipment? Explain.
- An asset with a cost of $100,000 and accumulated depreciation of $80,000 is sold for $8000.What is the amount of the gain or loss on disposal of the plant asset?You must evaluate the purchase of a spectrometer for the R&D department. The base price is $140,000, and it would cost another $30,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 4 year class and would be sold after 4 years for $60,000. The applicable depreciation rates are 33%, 45%, 15% and 7%. The equipment would require an $8000 increase in net operating working capital. The project would have no effect on revenues, but it should save the firm $50,000 per year before-tax labour costs. The firm's marginal federal-plus state tax rate is 40%. QUESTION:W Whatare the project's annual cash flows in Years 1, 2,3 and 4?If a computer is initially worth $1,000 and loses half of its value per year, what is its value after three years of depreciation? How much depreciation takes place in the third year?