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Can someone help me solve this? CENGAGE MINDTAP rwork Chapter 12 www ming 4. O Check My Work (3 remaining) 5. 6. eBook 7. The
Can someone help me solve this?
CENGAGE MINDTAP rwork Chapter 12 www ming 4. O Check My Work (3 remaining) 5. 6. eBook 7. The Bigboo Betting Company is contemplating the replacement of one of its botting machines with a newer and more efficient ane. The old machine was purchased prior to the TCJA, has a book value of $650,000, and a remaining useful life of 5 years. The film does not expect to realize any return from scrapping the old machine in 5 years, but it cen sell it now to another firm in the industry for $295,000. The old machine is being depreciated by $130,000 per year, using the straight-line method. The new machina has a purchase price of $1,100,000, an estimated useful life of 5 years, and an estimated salvage value of $160,000. The new machine is eligible for 10055 bonus depredation at the time of purchase. It is expected to economize on electric power usage, lahar, and repair costs, as well as to reduce the number of defective bottles. In total, an annual savings before taxes of $200,000 will be realized if the new machine is installed. The company's marginal tex rate is 25%, and it has a 12% WADC. a. What Initial cash outlay is required for the new machine after bonus depreciation is considered? Cash outflow should be indicated by a minus sign. Round your answer to the nearest dollar $ 716250 b. Calculate the change in the annual depreciation expense if the replacement is made. Negative change values, if any, should be indicated by a minus sign. Round your answers to the nearest dollar. Change In Depredation Year 1 2 S 3 5 S <. what are the incremental cash flows in years through round your answers to nearest dallar. year s d. should fim purchase new machine e. general how would each of fallowing factors affect investment decision and be treated expected life existing decreases. will look before cue relative selectct attributable it. select made. wacc is not constant but increasing as bigose adds more projects into its capital budget for year. npv wil due a sainct-capital cast. check my work remaining ofron ney q search this coun>Step by Step Solution
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