Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A new machine is expected to produce a MACRS deduction in three years of $140,000. FV of $1 at FV of an ordinary PV of

image text in transcribed
image text in transcribed
A new machine is expected to produce a MACRS deduction in three years of $140,000. FV of $1 at FV of an ordinary PV of an ordinary Year 8% annuity at 8% PV of $1 at 8% annuity at 8% 1 1. 080 1.000 0. 926 0.926 1. 166 2. 080 0. 857 1.783 WN 1. 260 3.246 0. 794 2.577 1. 360 4.506 0. 735 3. 312 O UT 1.469 5.867 0. 681 3.993 1. 587 7.336 0. 630 4.623 If the company has a(n) 8% after-tax hurdle rate and is subject to a 30% income tax rate, the correct discounted net cash flow to include in an acquisition analysis would be: Multiple Choice O None of the other answers is correct. O $77,812. O $33,348. O $0 O $144,508

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Accounting Principles Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

8th Canadian Edition

111950242X, 1-119-50242-5, 978-1119502425

More Books

Students also viewed these Accounting questions

Question

4. Similarity (representativeness).

Answered: 1 week ago