answer all the questions

Connect '619 (3' Q 9 https://ezto.mheducation.com/ext/map/index.htmiicon=conaexternaLbrowsetostlaunChUrI=http5%253A%252F%252Fimsr' El "' |||\\ El @ e E Assignment 6 . Ch 12 & 13 0 Saved Help Save .1. Exit Submit Check my work The Spartan Technology Company has a proposed contract with the Digital Systems Company of Michigan. The initial investment in land and equipment will be $120000. Of this amount. $70,000 is subject to veeyear MACRS depreciation. The balance is in nondepreciable property. The contract covers six years: at the end of six years. the nondepreciable assets will be sold for 3550.000. 3 33 The depreciated assets will have zero resale value. Use Table 1212. Use Appendix B for an approximate answer but calculate your points final answer using the formula and financial calculator methods. The contract will require an additional investment of $55,000 in working capital at the beginning of the rst year and, of this amount, 9500\" $25,000 will be returned to the Spartan Technology Company aer six years. H t m The investment will produce $50,000 in income before depreciation and taxes for each ofthe six years. The corporation is in a 25 Print percent tax bracket and has a 10 percent cost of capital. References :1. Calculate the net present value. [Do not round intermediate eulculatians and round your final answerte 2 decimal places.) Net present value 5 19563.00 b. Should the investment be undertaken? Yes O No ( Prev Connect X *Course Hero X Chapter_12_-_Moodle_Ready : E X + X CA https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheduca ... E Assignment 6 - Ch 12 & 13 Saved Help Save & Exit Submit Check my work 12 An asset was purchased three years ago for $120,000. It falls into the five-year category for MACRS depreciation. The firm is in a 25 percent tax bracket. Use Table 12-12. 3.33 a. Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $15,060. (Do not round intermediate points calculations and round your answers to whole dollars.) eBook Hint Tax loss on the sale $ 22,000 Tax benefit $ 7,700 Print References b. Compute the gain and related tax on the sale if the asset is sold now for $56,060. (Do not round intermediate calculations and round your answers to whole dollars.) Taxable gain $ 16,500 Tax obligation $ 5,775 Mc Graw Hill Type here to search 9 6:58 PM 10/11/2020 E