Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company is considering investing in expanding its factory. The total cost of the expansion will be $300,000, of which $80,000 will be in depreciable
A company is considering investing in expanding its factory. The total cost of the expansion will be $300,000, of which $80,000 will be in depreciable assets. The company's tax rate is 35% and the company uses the 5 year MACRS depreciation table (below). If the company expects $75,000 in incremental EBDT in year 1, calculate its cash flow for year 1 (to be used in capital budgeting analyses). $38,350.00 $59,000.00 $54,350.00 $16,000.00 A company is considering investing in expanding its manufacturing facility. The total cost of the expansion will be $600,000, of which $300,000 will be in depreciable assets. The company's tax rate is 35% and the company uses the 5 year MACRS depreciation table (below). If the company expects $200,000 in incremental EBDT in year 1 , calculate its cash flow for year 1 (to be used in capital budgeting analyses). \begin{tabular}{c} $49,000.00 \\ \hline$91,000.00 \\ $151,000.00 \\ $140,000.00 \end{tabular} A machine has a cost of $100,000. Based on the 5 year MACRS depreciation schedule below, calculate the amount of depreciation for this machine in year 3. \begin{tabular}{|} $11,500.00 \\ $19,200.00 \\ $20,000.00 \\ $100,000.00 \end{tabular} A company is considering investing in expanding its factory. The total cost of the expansion will be $500,000, of which $200,000 will be in depreciable assets. The company's tax rate is 35% and the company uses the 5 year MACRS depreciation table (below). If the company expects $100,000 in incremental EBDT in year 1, calculate its cash flow for year 1 (to be used in capital budgeting analyses). $75,500.00$70,000.00$45,500.00$30,000.00 A company decides to invest in replacing an old machine. The company buys a new machine for $110,000. It sells the old machine for $15,000. The old machine had a book value of $22,000 at the time it was sold. The company's tax rate is 35%. What is the net cost of the investment in the new machine (to be used in capital budgeting analysis)? $110,000.00 $95,000.00 $15,000.00 $92,550.00
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