You work for Tamimi Industries, which purchased robotics equipment for $430,000 six years ago. The equipment is in place today and has a total 10-year useful life, no salvage value, and a 5-year MACRS recovery period. The effective tax rate is 23% and the actual cash flow and depreciation amounts are shown. Year GI, $ Expenses, $ Depreciation, $ 1 250,000 −120,000 100,000 2 280,000 −120,000 160,000 3 200,000 −122,000 96,000 4 260,000 −124,000 57,600 5 260,000 −126,000 57,600 6 180,000 −128,000 28,800 EBIT is calculated for years 1 to n and includes the P or S amounts. Group startsTrue or False

You work for Tamimi Industries, which purchased robotics equipment for $430,000 six years ago. The equipment is in place today and has a total 10-year useful life, no salvage value, and a 5-year MACRS recovery period. The effective tax rate is 23% and the actual cash flow and depreciation amounts are shown. Year GI, $ Expenses, $ Depreciation, $ 1 250,000 −120,000 100,000 2 280,000 −120,000 160,000 3 200,000 −122,000 96,000 4 260,000 −124,000 57,600 5 260,000 −126,000 57,600 6 180,000 −128,000 28,800 EBIT is calculated for years 1 to n and includes the P or S amounts. Group startsTrue or False

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 11P

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Year	GI, $	Expenses, $	Depreciation, $
1	250,000	−120,000	100,000
2	280,000	−120,000	160,000
3	200,000	−122,000	96,000
4	260,000	−124,000	57,600
5	260,000	−126,000	57,600
6	180,000	−128,000	28,800