BlastCo Analytics needs to purchase a new metal shaper. BlastCo's after tax MARR is 12% and the corporate tax rate is 54%. A metal shaper is a CCA Class 8 asset. The remaining data are contained in the table below. Model Flex First Cost Economic Life Annual Net (Years) Savings $100,000 5 Blender $120,000 5 Flextastic $200,000 5 $50,000 $55,000 $75,000 Salvage Value $20,000 $25,000 $100,000

BlastCo Analytics needs to purchase a new metal shaper. BlastCo's after tax MARR is 12% and the corporate tax rate is 54%. A metal shaper is a CCA Class 8 asset. The remaining data are contained in the table below. Model Flex First Cost Economic Life Annual Net (Years) Savings $100,000 5 Blender $120,000 5 Flextastic $200,000 5 $50,000 $55,000 $75,000 Salvage Value $20,000 $25,000 $100,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please solve this in a copy with all process. Not in excel. If not done as instructed, I will down vote it.
On 3/15/18 Brian donated a painting worth $500,000 to an art museum. If Brian, had sold the painting it would have recognized a long- term capital gain of $100,000. During 2018 Brian. had the following income and expenses: $4,000,000 gross income, $3,000,000 business expenses, $100,000 dividends received deduction, $100,000 net operating loss carryforward, $60,000 net operating loss carryback, and a capital loss carries back of $30,000. Determine Brian's current charitable contribution and charitable contribution deduction in 2018, and charitable contribution carry forward.
Financial information about graders planned to be purchased is presented in the table below. Calculate the net present values of the machines with the least common multiple (LCM) approach. Choose the economically most suitable grader. MARR is specified as 16%. Purchase costs (TL) Annual repair-maintenance cost (TL) Major repair-maintenance (TL) Annual income (TL) Salvage value (end of 4th year) (TL) Economic life (years) Machine A 220.000+ 12.500*X 5.000 15.000 (at 3rd year) 110.000+ 2.000*Y 50.000 4 Machine B 300.000 + 14.500*Y 3.500 12.000 (at 3rd year) 140.000 + 1.200*X 70.000 6
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
An asset for drilling was purchased and place in service by a petroleum production company. Its initial investment is P60,000 and it has an estimated salvage value of P12,000 at the end of an estimated useful life of 14 years. Compute the book value at the end of the 5th year of life using SLM. a. P48,257.00 b. P42,857.00 c. None of the above d. P45,572.00
Assume the purchase price of a combine is $250,000. It is estimated to have a salvage value of $68,000 and a useful life of 8 years. The cost of capital is 7 percent. Compute the average annual depreciation and interest costs.
BlastCo Analytics needs to purchase a new metal shaper. BlastCo’s after-tax MARR is 12% and the corporate tax rate is 54%. A metal shaper is a CCA Class 8 asset. The remaining data are contained in the table below. Model First Cost Economic Life (Years) Annual Net Savings Salvage Value Flex $100,000 5 $50,000 $20,000 Blender $120,000 5 $55,000 $25,000 Flextastic $200,000 5 $75,000 $100,000 (a) Using the annual worth method, which model should BlastCo buy?(b) What is the approximate after tax IRR of each model?(c) What is the exact after tax IRR of each model? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
ASB is considering leasing a new machine. The lease calls for 9 payments of $1,022 per year with the first payment occurring immediately. The machine costs $8,228 to buy. The present value of CCA tax shield is $910. The present value of its salvage value is $488 and the present value of CCA recapture is $92. ASB firm can borrow at a rate of 10%. The corporate tax rate is 30%. What is the NPV of leasing?
1. GridCo Analytics needs to purchase new land surveying equipment. GridCo's after tax MARR is 9% and the corporate tax rate is 42%. Surveying equipment is a CCA Class 8 asset. The remaining data are contained in the table below. Model First Cost Economic Life Annual Net Salvage Value (Years) $20,000 $25,000 $30,000 (a) Using the annual worth method, which model should BlastCo buy? ' $110,000 $130,000 $155,000 Savings | $65,000 $85,000 $90,000 Ranger 5 Sonic_Flex 5 Laser_Metric 5 (b) What is the approximate after tax IRR of each model? ( (c) What is the exact after tax IRR of each model? tcas
Milliken uses a digitally controlled dyer for placing intricate and integrated patterrs on manufactured carpet squa for home and commercial use. It is purchased for $400,000. It is expected to last 8years and have a salvage valu $30,000. Increased net income due to this dyer is S95,000 per year. Milliken's tax rate is 40 percent, and the af tax MARR is 12 percent. Develop tables using a spreadsheet to determine the ATCF for each year and the after PW, AW, and IRR after 8 years. Use 5- years class depreciation for MACRS
A startup is considering buying a $295,000 piece of equipment. If it purchases the equipment, it will take a loan for the entire amount; the interest on the loan is 2%, and the loan will be repaid in 5 equal end of year payments. The startup estimates that the equipment would generate an additional $170,000 of revenue each year. At the end of 5 years, the equipment would have a salvage value of $21,000. The tax rate is 24%. Assuming a planning horizon of 5 years, that the equipment is depreciated using MACRS (3-year property class), and that the medical practice uses an after-tax MARR of 9%, compute the PW and determine whether the startup should invest in the equipment. Click here to access the TVM Factor Table calculator. Click here to access the MACRS-GDS Property Classes. Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental property. $ Carry all interim calculations to 5 decimal places and then round…
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