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e. What is the net cost of the new equipment? (Include the inflow from the sale of the old equipment.) Note: Do not round intermediate
e. What is the net cost of the new equipment? (Include the inflow from the sale of the old equipment.) Note: Do not round intermediate calculations and round your answer to the nearest whole dollar. f. Determine the depreciation schedule for the new equipment. Note: Round the depreciation base and annual depreciation answers to the nearest whole dollar. Round the percentage depreciation factors to 3 decimal places. b. What is the tax loss on the sale of the old equipment? Note: Do not round intermediate calculations and round your answer to the nearest whole dollar. c. What is the tax benefit from the sale? Note: Do not round intermediate calculations and round your answer to the nearest whole dollar. d. What is the cash inflow from the sale of the old equipment? Note: Do not round intermediate calculations and round your answer to the nearest whole dollar. Hercules Exercise Equipment Company purchased a computerized measuring device two years ago for $80,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $35,800. A new piece of equipment will cost $240,000. 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 Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. The firm's tax rate is 25 percent and the cost of capital is 9 percent. a. What is the book value of the old equipment? Note: Do not round intermediate calculations and round your answer to the nearest whole dollar
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