Answered step by step
Verified Expert Solution
Question
1 Approved Answer
12. Please choose the correct answer and give the full clear solution! (No need for explanations!) Thank you!! Question 12 10 pts Certain new machinery
12. Please choose the correct answer and give the full clear solution! (No need for explanations!) Thank you!!
Question 12 10 pts Certain new machinery used in manufacturing of motor vehicles, when placed in service, is estimated to cost $275,000. It is expected to reduce net annual operating expenses by $50,000 per year for 10 years and to have a $40,000 MV at the end of the 10th year. Assume that the form is in the federal taxable income bracket of $335,000 to $10,000,000 and that the state income tax rate of 7.5%. State income taxes are deductible from federal taxable income. This machinery is to be depreciated using the MACRS (GDS). Develop the BTCFs and ATCFs and compute for the respective PWs at EOY O using an MARR of 12%. EOY Before-Tax Cash Flow Depreciation {xx.xx} ($) {xx.xx) ($) Taxable Income {xx.xx} ($) Cash Flow for Income Taxes [xx.xx] ($) After-Tax Cash Flow {xx.xx) ($) o 1 [Select] 2 3 Select] 4 5 16 [ Select] 7 8 Select ] 9 10 PWO) using MARR Select ] questions/ ox (3,465) - phili... Oracle PeopleSoft... My DLSUL 12 machinery used in manufacturing of motor vehicles, when p xpenses by $50,000 per year for 10 years and to have a $40. ket of $335,000 to $10,000,000 and that the state income t s to be depreciated using the MACRS (GDS). Develop the BT Before-Tax Cash Flow Depreciation xx.xx} ($) [xx.xx} ($) Taxable Incom [ Select] [ Select] 67347.50 78595.00 39297.50 none of the choices 50000 te of 7.5%. State income taxes are deductible from fed and ATCFs and compute for the respective PWs at EOY -xx) ($) Cash Flow for Income Taxes [xx.xx} ($) After-Tax [Select [ Select] none of the choices -6096.65 6756.85 -741.02 1902.50 [ Select ] stimated to cost $275,000. It is expected to reduce net annual f the 10th year. Assume that the firm is in the federal taxable e income taxes are deductible from federal taxable income. This compute for the respective PWs at EOY O using an MARR of 12%. sh Flow for Income Taxes .xx} ($) After-Tax Cash Flow {xx.xx} ($) Select] [ Select] [ Select] 40079.43 40090.15 43903.35 none of the choices 35302.22 [Select] hinery used in manufacturing of motor vehicles, when placed in service, is estimated t es by $50,000 per year for 10 years and to have a $40,000 MV at the end of the 10th + $335,000 to $10,000,000 and that the state income tax rate of 7.5%. State income e depreciated using the MACRS (GDS). Develop the BTCFs and ATCFs and compute fo ore-Tax Eh Flow Depreciation {xx.xx} ($) xx} ($) Taxable income (xx.xx) ($) Cash Flow fo [xx.xx] ($) [ Select] [ Select ] [ Select] [Select) 90000 25442.50 37735.00 none of the choices 50000 me that the firm is in the federal taxable eductible from federal taxable income. This ective PWs at EOY O using an MARR of 12%. axes After-Tax Cash Flow {xx.xx) ($) [ Select ] Select] - 21725.09 none of the choices 253274.91 1295390.08 20390.08 [ Select] Question 12 10 pts Certain new machinery used in manufacturing of motor vehicles, when placed in service, is estimated to cost $275,000. It is expected to reduce net annual operating expenses by $50,000 per year for 10 years and to have a $40,000 MV at the end of the 10th year. Assume that the form is in the federal taxable income bracket of $335,000 to $10,000,000 and that the state income tax rate of 7.5%. State income taxes are deductible from federal taxable income. This machinery is to be depreciated using the MACRS (GDS). Develop the BTCFs and ATCFs and compute for the respective PWs at EOY O using an MARR of 12%. EOY Before-Tax Cash Flow Depreciation {xx.xx} ($) {xx.xx) ($) Taxable Income {xx.xx} ($) Cash Flow for Income Taxes [xx.xx] ($) After-Tax Cash Flow {xx.xx) ($) o 1 [Select] 2 3 Select] 4 5 16 [ Select] 7 8 Select ] 9 10 PWO) using MARR Select ] questions/ ox (3,465) - phili... Oracle PeopleSoft... My DLSUL 12 machinery used in manufacturing of motor vehicles, when p xpenses by $50,000 per year for 10 years and to have a $40. ket of $335,000 to $10,000,000 and that the state income t s to be depreciated using the MACRS (GDS). Develop the BT Before-Tax Cash Flow Depreciation xx.xx} ($) [xx.xx} ($) Taxable Incom [ Select] [ Select] 67347.50 78595.00 39297.50 none of the choices 50000 te of 7.5%. State income taxes are deductible from fed and ATCFs and compute for the respective PWs at EOY -xx) ($) Cash Flow for Income Taxes [xx.xx} ($) After-Tax [Select [ Select] none of the choices -6096.65 6756.85 -741.02 1902.50 [ Select ] stimated to cost $275,000. It is expected to reduce net annual f the 10th year. Assume that the firm is in the federal taxable e income taxes are deductible from federal taxable income. This compute for the respective PWs at EOY O using an MARR of 12%. sh Flow for Income Taxes .xx} ($) After-Tax Cash Flow {xx.xx} ($) Select] [ Select] [ Select] 40079.43 40090.15 43903.35 none of the choices 35302.22 [Select] hinery used in manufacturing of motor vehicles, when placed in service, is estimated t es by $50,000 per year for 10 years and to have a $40,000 MV at the end of the 10th + $335,000 to $10,000,000 and that the state income tax rate of 7.5%. State income e depreciated using the MACRS (GDS). Develop the BTCFs and ATCFs and compute fo ore-Tax Eh Flow Depreciation {xx.xx} ($) xx} ($) Taxable income (xx.xx) ($) Cash Flow fo [xx.xx] ($) [ Select] [ Select ] [ Select] [Select) 90000 25442.50 37735.00 none of the choices 50000 me that the firm is in the federal taxable eductible from federal taxable income. This ective PWs at EOY O using an MARR of 12%. axes After-Tax Cash Flow {xx.xx) ($) [ Select ] Select] - 21725.09 none of the choices 253274.91 1295390.08 20390.08 [ Select]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started