XYZ bought an asset that cost $200,000 at the beginning of the year.  It has a salvage value of $30,000.  The useful life of the asset is 10 years.  If the company uses straight-line depreciation, what would depreciation be for the first year of the asset's life? Group of answer choices $30,000 $200,000 $17,000 $20,000

Choose the right answer of the following

You just bought a new piece of farm machinery for $100,000. You expect the machinery to have a useful, economic life of five years, and you account the asset's depreciation to be $18,000 using the straight-line depreciation methods How much is the salvage value for this asset? O $50,000 O $5000 O $15,000 $10,000

XYZ bought an asset that cost $200,000 at the beginning of the year.  It has a salvage value of $30,000.  The useful life of the asset is 10 years.  How much will the company's total depreciation expense be over the asset's 10 year life? Group of answer choices $200,000 $170,000 $30,000 $20,000

Q- vipul

onsider the following financial informationabout a retooling project at a computer manufacturing company:• The project costs $2.5 million and has a five-yearservice life.• The retooling project can be classified as sevenyear property under the MACRS rule.• At the end of the fifth year, any assets held for theproject will be sold. The expected salvage valuewill be about 10% of the initial project cost.• The firm will finance 40% of the project moneyfrom an outside financial institution at an interestrate of 10%. The firm is required to repay the loanwith five equal annual payments.• The firm’s incremental (marginal) tax rate on theinvestment is 35%.• The firm’s MARR is 18%.With the preceding financial information,(a) Determine the after-tax cash flows.(b) Compute the annual equivalent worth for thisproject.

5. A company buys an asset with a cost of $96,000. They decide on a 6-year useful life and a $6,000 salvage value. What is the MONTHLY depreciation using straight line depreciation?

The great tech company is considering replacing one of its machines with a more efficient one. The old machine has a book value of $60,000 and a remaining useful life of 5 years. It can sell the old machine now for $ 265,000. The old machine is being depreciated by 120,000 per year straight line. The new machine has a purchase price of $ 1,175,000 an estimated useful life and 5 years MACRS class life and salvage value of $145,000. Annual economic savings is $255,000 if new machine is installed. Taxes 35% and WACC is 12.  Calculate the NPV and IRR of the project and make a decision on accepting the project and why? If expected life of existing machine decreased what effect does this have on the cash flow, discuss only? No calculations needed, just discuss.

Wizard Company has an old machine that is fully depreciated but has a current salvage value of $10,000. The company wants to purchase a new machine that would cost $60,000 and have a five-year useful life and zero salvage value. Expected changes in annual revenues and expenses if the new machine is purchased are: Increased revenues $10,000 $120,000 Increased expenses 14,000 Salary of additional operator Supplies Depreciation 12,000 Maintenance Increased net income 8.000 20.000 $30,000 (ignore income taxes in this problem.) Required: 1. What is the payback period on the new equipment? 2. What is the simple rate of return on the new equipment?

am. 214.