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can you help me to correct the wrong answers (red dots marked with x) thanks in advance. I'll make sure give thumbs Hercules Exercise Equipment
can you help me to correct the wrong answers (red dots marked with x) thanks in advance. I'll make sure give thumbs
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $70,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $30,800. A new piece of equipment will cost $160,000. it also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 12-12 Use the formula and financial calculator methods. for an approximate answer but calculate your final answer using The firm's tax rate is 25 percent and the cost of capital is 11 percent. a. What is the book value of the old equipment? (Do not round Intermedlate calculations and round your answer to the nearest whole dollor.) Answer is complete and correct. Book value b. What is the tax loss on the sale of the old equipment? (Do not round intermedlate colculatlons and round your answer to the neorest whole dollor.) Answer is complete and correct. c. What is the tax benefit from the sale? (Do not round Intermedlate calculations and round your answer to the nearest whole dolier.) d. What is the cash inflow from the sale of the old equipment? (Do not round Intermedlate calculations and round your answer to the nearest whole dollar.) Answer is complete and correct. e. What is the net cost of the new equipment? (Include the inflow from the sale of the old equipment) (Do not round Intermedlate colculations and round your answer to the nearest whole dollar.) Answer is complete and correct. t. Determine the depreciation schedule for the new equipment. (Round the depreclation base and annual depreclation answers to the neerest whole dollor. Round the percentoge depreclation factors to 3 declmal ploces.) 9. Deterine the deprecletion achedule for the remeining yest. of the old equlphert. Pound the deprecietion base n wid annial deprecistion answers to the nearest whole dolise. Pound the percentage deprecletion factors to 3 dezim al pinces) (9) Answer is complete but mot entirely carrect. as a declmal rounded to 2 decimal places. Round all ather answers to the nearest whole dollar) L. Compute the afterasx bereits oithe copt soving- (Eemter the afiertax factor os a decimal rounded ta 2 decimal places. Pound ail. ather anawes to the nearest whole dollar.) Trtemediotecolci sticas and round pour anewens fo the nearest whale doillath j-2. Compute the present value of the total annual benefits. (Do not round intermediate calculatio nearest whole dollar.) Answer is complete and correct. k-1. Compare the present value of the incremental benefits (i) to the net cost of the new equipment (e) colculations. Negative amount should be indicated by a minus sign. Round your answer to the near Answer is complete and correct. k-2 Should the replacement be undertaken? 10 12-12 Depreclation percentages (expressed in decimals) PV=FV[(1+i)n1]
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