Jim owns an ice cream store. He is considering buying a new waffle cone machine for ($

Question:

Jim owns an ice cream store. He is considering buying a new waffle cone machine for $\$ 600$. The service life of the machine is five years. At the end of the five years, Jim estimates he can sell the machine for $\$ 100$. He estimates his net contribution from the machine will be $\$ 300$ per year. The tax rate of the company is $20 \%$ and its discount rate is $10 \%$. What is the depreciation expense for the machine? How much tax will Jim owe each year? (Hint: Include savings from depreciation.) What will the annual cash flows be for the machine? What is the NPV of the machine?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 100% (QA)

Answered By

Mustafa olang

Please accept my enthusiastic application to solutionInn. I would love the opportunity to be a hardworking, passionate member of your tutoring program. As soon as I read the description of the program, I knew I was a well-qualified candidate for the position. I have extensive tutoring experience in a variety of fields. I have tutored in English as well as Calculus. I have helped students learn to analyze literature, write essays, understand historical events, and graph parabolas. Your program requires that tutors be able to assist students in multiple subjects, and my experience would allow me to do just that. You also state in your job posting that you require tutors that can work with students of all ages. As a summer camp counselor, I have experience working with preschool and kindergarten-age students. I have also tutored middle school students in reading, as well as college and high school students. Through these tutoring and counseling positions, I have learned how to best teach each age group. For example, I created songs to teach my three-year-old campers the camp rules, but I gave my college student daily quizzes to help her prepare for exams. I am passionate about helping students improve in all academic subjects. I still remember my excitement when my calculus student received her first “A” on a quiz! I am confident that my passion and experience are the qualities you are looking for at solutionInn. Thank you so much for your time and consideration.

4.80+ 2+ Reviews 10+ Question Solved

Related Book For book-img-for-question