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A piece of netn.rl1_u..ur purchased industrial equipment costs $9?D,DUD and is classied as sevenyear property under MACRS. The MACRS depreciation schedule is shown in Table
A piece of netn.rl1_u..ur purchased industrial equipment costs $9?D,DUD and is classied as sevenyear property under MACRS. The MACRS depreciation schedule is shown in Table w. Calculate the annual depreciation allowances and endoftheyear book values for this equipment. {Leave no cells blank - be certain to enter "D\" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.: Beginning Book Value Endilg Book Value .- n n Consider an asset that costs $695,600 and is depreciated straightline to zero over its nineyear tax life. The asset is to he used in a fiveyear project; at the end of the project, the asset can be sold for $149,600. If the relevant tax rate is 22 percent, what is the aftertax cash ow from the sale of this asset? {Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.} Ate-m salvage value An asset used in a fouryear project falls in the veyear MACRS class for tax purposes. The asset has an acquisition cost of $5,050,000 and 1will be sold for $1,525,000 at the end of the project. If the tax rate is 25 percent, what is the aftertax salvage value of the asset? Refer to Table 10.1 {Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,561: nae-m ems-mm Esfandairi Enterprises is considering a new threeyear expansion project that requires an initial xed asset investment of $2.38 million- The xed asset will be depreciated straightline to zero over its threeyear tax life, after which time it will he worthless. The project is estimated to generate $1,6TSDOD in annual sales, with costs of $641GOD. If the tax rate is 22 percent, what is the DEF for this project? [Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g.. 1,234,561} _ Esfandairi Enterprises is considering a new threeyear expansion project that requires an initial fixed asset investment of $2.31 million. The xed asset will he depreciated straight line to zero over its threeyear tax life, after which time it will be worthless. The project is estimated to generate $1,?25.0DD in annual sales, with costs of $635,060. The tax rate is 23 percent and the required return on the project is 12 percent. What is the project's NP'U'? {Do not round intermediate calculations. Enter your answer in dollars. not millions of dollars, and round your answer to 2 decimal places, e.g., 133456131}
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