The Parkview Hospital is considering the purchase of a new autoclave. This equipment will cost $161,000. This asset will be depreciated using an MACRS (GDS) recovery period three years. What is the BV at the end of the second year? Click the icon to view the GDS Recovery Rates (r) for the 3-year property class. Choose the correct answer below. O A. The BV at the end of the second year is $51,520, O B. The BV at the end of the second year is $107,339 OC. The BV at the end of the second year is $35,774. O D. The BV at the end of the second year is $71,565,

If a garden center is considering the purchase of a new tractor with an initial investment cost of $113,000, and the center expects a return of $32,000 in year one, $19,000 in years two and three, $17,000 in years four and five, and $9,000 in year six and beyond, what is the payback period? years

Please show the appropriate formula and step-by-step calculations and working for the following:                                                                                                                                                Rare Agri-Products Ltd. is considering a new project with a projected life of seven (7) years. The project falls under the government’s subsidy program for encouraging local agricultural products and is eligible for a one-time rebate of 25% on any initial equipment installed for the project. The initial equipment (IE) will cost $41,000,000. At the end of year 1, An additional equipment (AE) costing$3,500,000 will be needed at the end of year 3. At the end of seven (7) years, the original equipment, IE, will have no resale value but the supplementary equipment, AE, can be sold for $50,000. A working capital of $1,350,000 will be needed.  The project is forecast to generate sales of agri-products over the seven years as follows: Year 1  70,000 units…

Determine the capitalized cost of a permanent roadside historical marker that has a first cost of $57,500 and a maintenance cost of $3,900 once every 7 years. Use an interest rate of 10% per year. The capitalized cost is $ [61610.814 O Required information Assume that 25 years ago your dad invested $300,000, plus $29,000 in years 2 through 5, and $42,000 per year from year 6 on. At a very good interest rate of 11% per year, determine the CC value. The CC value is determined to be $

City Hospital, a nonprofit organization, estimatesthat it can save $28,000 a year in cash operating costs for the next 10 years if it buys a special-purpose eyetestingmachine at a cost of $110,000. No terminal disposal value is expected. City Hospital’s required rate ofreturn is 14%. Assume all cash flows occur at year-end except for initial investment amounts. City Hospitaluses straight-line depreciation. Q.What other factors should City Hospital consider in deciding whether to purchase the special-purposeeye-testing machine?

please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly

You must decide whether to buy, build or lease a building for your business needs over the next 10 years. If you decide to build, you must determine if it is better to buy an existing building and modify it or buy land and build one to match your needs. Leasing an appropriate building will cost $10,000 per month with an annual increase of 3% per year and will require some retrofitting to suit your needs ($700,000). Empty land will cost $2,500,000 and the construction of a new building would be $3,000,000. You can buy an existing building for $2,500,000 but you will have to modify it to your needs at a cost of $1,200,000. However, the building itself is quite old and will be at the end of its useful life when the ten years are up. You estimate that the land alone is worth $2,000,000. There is a municipal election scheduled in the next months. The frontrunner, who has an estimated 70% chance of winning, is prioritizing core services and the environment. If they win, there is a 65% chance…

A wedding maching custs $250,000. A facility purchases one and plans to use it for 10 years, at 'which point it will have a value of 35,000. calculate the depreciation allowance and book value after 5 yrak of use using Straight line depreciation balance depreciation (a) (b) using deckning () Uring MACKS 7-year property with 50% bonus depreciation (d) using MACKS 7- year property with 50% bonus depreciation of the machine is sold if in year s?

Kartman Corporation is evaluating four different real estate investments. Management plans to buy the properties today and sell them three years from today. The annual discount rate for these investments is 12%. The following table summarizes the initial cost and the sale price in three years for each property: Cost Today Sale Price in Year 3 $520,000 $1,020,000 Parkside Acres 870,000 1,470,000 Real Property Estates Lost Lake Properties 910,000 510,000 220,000 Overlook 20,000 Kartman has a total capital budget of $540,000 to invest in properties. Which properties should it choose? ... The profitability index for Parkside Acres is (Round to two decimal places.)

If a garden center is considering the purchase of a new tractor with an initial investment cost of $117,000, and the center expects a return of $31,000 in year one, $22,000 in years two and three, $17,000 in years four and five, and $8,000 in year six and beyond, what is the payback period? fill in the blank 1 years