Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company is considering an 8-year project to expand into a new geographical area. The project requires a new machine, which would cost $230,000 FOB

image text in transcribed
A company is considering an 8-year project to expand into a new geographical area. The project requires a new machine, which would cost $230,000 FOB San Francisco, with a shipping cost of $6,000 to the new plant location Installation as expenses of $12,000 would also be required This new machine would be classified 7-year property for MACRS depreciation purposes. The project engineers anticipate that this equipment could be sold for salvage for $37,000 at the end of the project if the corporate tax rate is 30%, what is the after tax salvage cash flow for this new machine at the end of the proper ? (Answer to the nearest dollar) MACRS percentages for depreciation each year are as follows A company is considering a 5.year project that opens a new product line and requires an initial outlay of $85,000 The assumed selling price is $99 per unit, and the variable cost is $60 per unit Fixed costs not including depreciation are $15,000 per year Assume depreciation is calculated using straight-line down to zero salvage value if the req red rate of return is 12% per year, what is the accounting breakeven point? (Answer to the nearest whole unit.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions