Kenzie purchased a new 3-D printer for $450,000. Although this printer is expected to last for ten years, Kenzie knows the technology will become old quickly and so she plans to replace this printer in three years. At that point, Kenzie believes she will be able to sell the printer for $30,000. Calculate yearly depreciation using the double-declining-balance method. Calculate depreciation using the straight-line method.

Crane Inc. wants to purchase a new machine for $40,700, excluding $1,500 of installation costs. The old machine was purchased 5 years ago and had an expected economic life of 10 years with no salvage value. The old machine has a book value of $2,300, and Crane Inc. expects to sell it for that amount. The new machine will decrease operating costs by $9,700 each year of its economic life. The straight-line depreciation method will be used for the new machine for a 6-year period with no salvage value. Click here to view the factor table. (a) Determine the cash payback period. (Round cash payback period to 2 decimal places, e.g. 10.53.) Cash payback period (b) Determine the approximate internal rate of return. (Round answer to 0 decimal places, e.g. 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Internal rate of return (c) years The investment Assuming the company has a required rate of return of 10%, determine whether the new machine should…

Tech Engineering Company is considering the purchase of a new machine. The new machine, which falls into the MACRS 5-year class, has an estimated life of 5 years, and it costs $40,000 to purchase the machine. Tech plans to sell the machine at the end of the fifth year for $12,000. Initial decrease in accounts payable = $3,000, which must be restored at the end of the project's life. The applicable depreciation rates are 0.20, 0.32, 0.19, 0.12, 0.11, and 0.06. The new machine is expected to generate before-tax cash savings of $13,000 per year. The company's tax rate is 30%. What is the year 5 total free cash flow of the proposed project? Group of answer choices $24,540 $32,540 $22,540 $27,540 $29,540

I would like to check my answer to number 5 if you can write it out for me.

You have an opportunity to acquire a property from First Capital Bank. The bank recently obtained the property from a borrower who defaulted on his loan. First Capital is offering the property for $200,000. If you buy the property, you believe that you will have to spend (1) $10,500 on various acquisition related expenses and (2) an average of $2,000 per month during the next 12 months for repair costs, and so on, in order to prepare it for sale. Because First Capital Bank would like to sell the property as soon as possible, it is willing to provide $180,000 in financing at 4.25 percent interest for 12 months payable monthly (interest only). Your market research indicates that after you repair the property, it may sell for about $225,000 at the end of one year. Furthermore, you will probably have to pay about $3,000 in fees and selling expenses in order to sell the property at that time.   If you wanted to earn a 20 percent return compounded monthly, do you believe that this would be a…

Maria is a wedding planner. She purchases a laserjet printer for invitations, save-the-date postcards, etc. The laserjet costs $400. The laserjet has an expected life of 5 years; at the end of which time Maria expects a rebate of $20.00 when she turns in her old laserjet and purchases a new one. Maria uses the sum-of-the-years'-digits method to calculate depreciation.What is the annual depreciation in the first year?$What is the book value at the end of the second year?$What is the accumulated depreciation by the end of year 3?$

Shanice bought the car for $28,430. The value of the car is predicted to depreciate to $13,590 after 5 years.   1. If Shanice keeps the car for an additional 3 years (8 years total), predict the value of the car at the end of those 3 additional years, assuming the value continues decreasing exponentially at the same rate? $   2. The average maintenance costs on the car are expected to be $350 the year it is purchased and increase by $50 each year after that. Use this to predict the total maintenance costs during the 3 years after the loan is paid off.

A farmer bought a new harvester for $120,000. The harvester’s operating expenses averaged $10,000 per year but the harvester saved $40,000 per year in labor costs. It was depreciated over a life of 5 years using the 100% bonus depreciation method, assuming a salvage value of $30,000. The farmer sold the harvester for only $10,000 at the end of the fifth year. Given an income tax rate of 30% and a MARR rate of 5% per year, determine the after-tax net present worth of this investment.

Viktor Hovland purchases land with natural gas reserves for $500,000. He expects to extract 2,000 units of natural gas from the reserve. In 5 years, when the land is fully depleted, the cost to restore the land to its prior state will be $100,000 and the land has no residual value. In year 1, he extracts 600 units and sells 500 units. It costs 50 dollars per unit to extract the natural gas. What is the ending value of his inventory after 1 year? The effective interest rate is 8 percent.

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