Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. an automaker is buying some special tools for $

1. An automaker is buying some special tools for $100,000. The tools are being depreciated...

80.2K

Verified Solution

Question

Accounting

image

1. An automaker is buying some special tools for $100,000. The tools are being depreciated by double declining balance depreciation using a 4-year depreciable life and a $6250 salvage value. It is expected the tools will actually be kept in service for 6 years and then sold for $6250. The before-tax benefit of owning the tools is as follows: Year Before-Tax Cash Flow 1 $30,000 2 3 $30,000 $35,000 $40,000 $10,000 4 5 6 $10,000 6,250 Selling price Compute the after-tax rate of return for this investment situation, assuming a 30% incremental tax rate

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Daube Industries’ operations for the month of October are summarized as follows: Provided $5,800 of services...

Accounting
Q

Compared to the control islands, on the experimental islands, a [Select] survived, and a [Select]...

Biology
Q

Which of the followingis true regardingdiffusion rates incells?A. A larger volume-to-surfacearea ratio increases diffusionrate.B. Projections,...

Biology
Q

True or False Soft social behavioral and economic sciences do not employ the same scientific...

Biology
Q

40 A carnot engine has efficiency 25 It operates between reservoirs of constant temperatures with...

Physics
Q

Solve by completing the square.x + 12x - 5 =0x = 6-?41 or x =...

Basic Math
Q

Write your answers as a percent 1 decimal placem For 1 7 use the following...

Statistics
Q

3 Diyagram bir enine taraf ndan kesilen iki paralel izgiyi g stermektedir 23 7x 12...

Algebra
Q

Required information [The following information applies to the questions displayed below.] Cane Company...

Accounting
Q

There almost always is a balance sheet liability for postretirement benefit plans since very few...

Accounting
Q

Aging of Receivables; Estimating Allowance for Doubtful Accounts end of business on December 31,20Y1 :...

Accounting
Q

4. The Departmental Interpretation and Practice Notes No 21 allows apportionment between Hong Kong and...

Finance