Gluon Incorporated is considering the purchase of a new high pressure glueball. It can purchase the glueball for $70,000 and sell its old low-pressure glueball, which is fully depreciated, for $12,000. The new equipment has a 10-year useful life and will save $16,000 a year in expenses before tax. The opportunity cost of capital is 9%, and the firms tax rate is 21%. What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the investment immediately.<\/p>
answer is not 4679.77<\/p>", "transcribed_text": "", "related_book": { "title": null, "isbn": null, "edition": null, "authors": null, "cover_image": null, "uri": null, "see_more_uri": "" }, "free_related_book": { "isbn": "", "uri": "", "name": "", "edition": "" }, "question_posted": "2024-09-13 00:05:26", "see_more_questions_link": "\/study-help\/questions\/business-accounting-2024-September-20", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/industrial-organizational-psychology-understanding-the-workplace\/what-are-the-hidden-negative-consequences-of-benevolent-sexism-2002726", "description": "What are the hidden negative consequences of benevolent sexism?", "stars": 0 }, { "url": "\/locate-the-2007-financial-statements-for-the-walt-disney-company-99806", "description": "Locate the 2007 financial statements for The Walt Disney Company on the Internet. Once you have located those financial statements, consider the following question. From Disneys foreign currency...", "stars": 3 }, { "url": "\/study-help\/questions\/gluon-incorporated-is-considering-the-purchase-of-a-new-high-10521831", "description": "Gluon Incorporated is considering the purchase of a new high pressure glueball. It can purchase the glueball for $70,000 and sell its old low-pressure glueball, which is fully depreciated, for...", "stars": 3 }, { "url": "\/study-help\/questions\/xample-5-9-museum-the-display-manager-at-a-museum-9651754", "description": "xample 5 9. MUSEUM The display manager at a museum is setting up a rectangular area for an exhibit. The exhibit must be at least 400 square feet, and its perimeter must 82 feet. What are the possible...", "stars": 3 }, { "url": "\/study-help\/questions\/which-of-the-following-is-clearly-an-absolute-criterion-that-3491242", "description": "Which of the following is clearly an absolute criterion that must be met? Multiple Choice The employee Wellness Center must cost less than $250,000 to build. The band for the picnic should be able to...", "stars": 3 }, { "url": "\/study-help\/questions\/conrad-sends-his-quality-control-manager-to-mexico-to-ensure-3490392", "description": "Conrad sends his quality control manager to Mexico to ensure the quality of a new manufacturer is meeting specifications. Which risk is Conrad addressing? Question 20 options: Process risk Control...", "stars": 3 }, { "url": "\/study-help\/questions\/exercise-54-allocation-of-cost-and-workpaper-entries-at-date-3487834", "description": "Exercise 5-4 Allocation of Cost and Workpaper Entries at Date of Acquisition On January 1, 2012, Porter Company purchased an 80% interest in Salem Company for $260,000. On this date, Salem Company...", "stars": 3 }, { "url": "\/study-help\/questions\/one-world-not-three-ownt-relief-fund-is-an-international-3473164", "description": "One World Not Three (OWNT) Relief Fund is an international nonprofit relief agency based in the United States. OWNT recently celebrated its tenth anniversary and is in the middle of trying to expand...", "stars": 3 }, { "url": "\/study-help\/questions\/explain-why-us-presidents-often-favor-a-lower-dollar-over-2827268", "description": "explain why U.S. presidents often favor a \"lower dollar\" over the course of their presidency. Explain the relationship between the relative value of the dollar and its relationship to U.S. exports...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/please-make-a-flowchart-using-the-program-called-flogorithm-for-10521830", "next": "\/study-help\/questions\/amounts-for-materials-rustic-ramblings-furniture-company-manufactures-furniture-rustic-10521832" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Finance", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-finance" }, { "name": "Gluon Incorporated is considering the purchase of a new high pressure glueball.", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/gluon-incorporated-is-considering-the-purchase-of-a-new-high-10521831" } ], "skill_details": { "skill_id": "13", "skill_name": "Finance", "parent_id": "1" } } } }