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Grove Medio plans to acquire production equipment for $847,500 that will be depreciated for tax purposes as follows: year 1 . $329,500; year 2,$189,500; and

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Grove Medio plans to acquire production equipment for $847,500 that will be depreciated for tax purposes as follows: year 1 . $329,500; year 2,\$189,500; and in each of years 3 through 5, \$109,500 per year. A 10 percent discount rate is appropriate for this asset, and the company's tax rate is 20 percent. Use Exhibit A 8 and Exhibit A 9. Requlred: 0. Compute the present value of the tax shield resulting from depreciation b. Compute the present value of the tax shleid from depreciation assuming straight-line depreciation (\$169,500 per yean). Complete this question by entering your answers in the tabs below. Compute the present value of the tax shield resulting from depreciation. Note: Round py tactor to 3 decimal places. Grove Media plans to acqure production equipment for $847,500 that wili be depreciated for tax purposes as follows: year 1 , 5329,500 , year 2,5189,500, and in each of years 3 through 5,$109,500 per year. A 10 percent discount rate is approprtate for this asset and the company's tax rote is 20 percent Use Exhibit A.8 and Exhibit A. 9. Required: 0. Compute the present value of the tax shield resulting from depreciation. b. Compute the present value of the tax shield from depreciation assuming straight-ine depreciation (\$169.500 per yean) Complete this question by entering your answers in the tabs below. Compute the present value of the tax shield from deprecation assuming straight-line depreciation ( $169,500 per year). Note: Round py factor to 3 decmal plises. Ironwood Charties is considering an investment in one of their buldings that is expected to return the following cosh flows: Use Exhibit 8.8 This schedule indudes all cash inflows from the project, which will also require an immediate $164,000 cash outlay The organization is tax-exempt, therefore, taxes need not be considered Required: a. What is the net present value of the project if the appropnate discount rate is 8 percent? b. What is the net present value of the project if the appropriate discount rate is 4 percent? Complete this question by entering your answers in the tabs below. What is the net present value of the project if the appropriate discount rate is 8 percent? Note: Round Pv factor to 3 deomal ploces, Nepative amount should be indicated by a minus sign. Ironwood Charmes is considering an investment in one of thetr buldings that 15 expected to return the following cash nows: Use Explisit A 8 This schedule includes all cash inflows from the project, which will also require an immediate $164,000 cash outiay. The organization is tax-exempt, therefore, taxes need not be considered Requlred: 0. What is the net present value of the project it the appropriate discount rate is 8 percent? b. What is the net present value of the project if the appropriate discount rate is 4 percent? Complete this question by entering your answers in the tabs below. What is the net present value of the project if the appropriate discount rate is 4 percent? Note: Hiound py factor to 3 dearmal places

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