Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. einitial cost savings tax rate expected salvage of

eInitial Cost Savings Tax Rate Expected Salvage of New Machine Salvage of Old Machine w/o...

60.1K

Verified Solution

Question

Accounting

eInitial Cost Savings Tax Rate Expected Salvage of New Machine Salvage of Old Machine w/o New Salvage of Old Machine Now (w/ New) Discount Rate 1 Year 2 Old Machine Depreciation Old Machine Book Value 14 s New Machine MACRS Depreciation Schedule 37 Depreciation Expense 18 Book Value 19 20 Year 21 Change in Depreciation Expense 22 EBIT 23 Taxes 24 Operating Cash Flow 25 Net Income 26 Before Tax Salvage Value 27 Taxes on Salvage 28 After Tax Salvage Value 29 Initial Investment 30 31 Net Capital Spending 32 Changes in NWC 34 Cash Flow from Assets 36 Present Value of Cash Flow from Assets 0 0 Original Machine Initial cost=100,000 Depreciation=9,000 Purchased 5 years ago Book Value = 55,000 Salvage today = 65,000 Salvage in 5 years = 10,000 1 1 2 2 New Machine Initial cost 150,000 5-year life Salvage in 5 years = 0 Cost savings = 50,000 per year 3 3 3-year MACRS depreciation Required return = 10% Tax rate= 40% 4 5 5
image
image

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Medical Sciences
1.2K views

5. Humans can survive a few days without water, due in large part to the ability...

Physics
1.2K views

An energy saving lamp with a power of P = 11 W emits an electromagnetic wave...

Basic Math
1.2K views

The length of a rectangular deck is 4 times its width. If the deck's perimeter...

Basic Math
1.2K views

Find the domain of the function.f(x) = 10 / x-8What is the domain of f?A....

Statistics
1.2K views

Given the two samples of commute times minutes shown here which of the following are...

Accounting
1.2K views

Koby Company issued $300,000 of bonds for $325,000. (a) Prepare the journal entry...

Accounting
1.2K views

Assume a purchase of an ice cream truck at $41,000, with a $1,000 salvage value....

Accounting
1.2K views

College Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,125,000...

Accounting
1.2K views

Question Already have all the information given to me by my professor. Not sure what...

Accounting
1.2K views

The operations vice president of Security Home Bank has been interested in investigating the efficiency...

Accounting
1.2K views

Blues Inc. manufactures jeans in the cutting and sewing process. Jeans are manufactured in 40-jean...

Accounting
1.2K views

Mr. and Mrs. Daniels, age 67 and 52, file a joint tax return. They have...