Question
ABC Company purchased a 3-year MACRS property for $17,951 3 years ago. What is the current book value of this equipment? The MACRS allowance percentages
ABC Company purchased a 3-year MACRS property for $17,951 3 years ago. What is the current book value of this equipment?
The MACRS allowance percentages are as follows, starting with year one: 33.33, 44.45, 14.81, and 7.41 percent.
ABC Company purchased a 3-year MACRS property for $31,439 2 years ago. What is the current book value of this equipment?
The MACRS allowance percentages are as follows, starting with year one: 33.33, 44.45, 14.81, and 7.41 percent.
A project requires $27,682 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 5 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?
A project requires $58,276 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 3 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?
A project has an initial requirement of $85,030 for equipment. The equipment will be depreciated to a zero book value over the 4-year life of the project. The investment in net working capital will be $6,119. All of the net working capital will be recouped at the end of the 4 years. The equipment will have an estimated salvage value of $19,322.The annual operating cash flow is $48,085. The cost of capital is 15 percent. What is the project's net present value if the tax rate is 8 percent?
ABC, Inc. is considering purchase of a new equipment. The sales are expected to be $891,018 and the total cash expenses are expected to be $396,962. The annual depreciation is $74,029 and the tax rate is 28.7%. What is the operating cash flow?
ABC, Inc. purchased an equipment at time=0 for $66,615. The shipping and installation costs were $15,929. The equipment is classified as a 5-year MACRS property. The investment in net working capital at time=0 was $7,545 which would be recouped at the end of the project. The project life is five years. At the end of the fifth year, the company will sell the equipment for $45,340. The annual cash flows are $39,333. What is the cash flow of the project in Year 5? That is, solve for CF5. Assume that the tax rate is 23%
The MACRS allowance percentages are as follows, starting with Year 1: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent.
Note: In the last year of the project, the Total Cash Flow = Operating Cash Flow + Terminal Cash Flow
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