Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hello, pls answer asap! will rate thank you so much! Question 12 10 pts Certain new machinery used in manufacturing of motor vehicles, when placed

hello, pls answer asap! will rate thank you so much!
image text in transcribed
image text in transcribed
image text in transcribed
Question 12 10 pts Certain new machinery used in manufacturing of motor vehicles, when placed in service, is estimated to cost $275,000. It is expected to reduce net annual operating expenses by $50,000 per year for 10 years and to have a $40,000 MV at the end of the 10th year. Assume that the firm is in the federal taxable income bracket of $335,000 to $10,000,000 and that the state income tax rate of 7.5%. State income taxes are deductible from federal taxable income. This machinery is to be depreciated using the MACRS (GDS). Develop the BTCFs and ATCFs and compute for the respective PWs at EOY O using an MARR of 12%. EOY Before. Tax Cash Depreciation {xx.xx} ($) Flow {xx.xx) ($) Taxable Income (xx.xx) ($) Cash Flow for Income (xx.xx) ($) 0 1 [Select) 2 3 Select 4 5 6 EOY Before- Tax Cash Depreciation (xx.xx} ($) Flow {xx.xx) ($) Taxable income {xx.xx) ($) Cash Flow for Income (xox.xx) ($) 0 1 [Select) 2 3 Select) 4 5 6 7 8 Select) 9 10 PW(O) using MARR Taxable income (xx.xx} ($) Cash Flow for Income Taxes [xx.xx) (5) After-Tax Cash Flow (xx.xx} ($) Select 1 Select) Select) Select) Question 12 10 pts Certain new machinery used in manufacturing of motor vehicles, when placed in service, is estimated to cost $275,000. It is expected to reduce net annual operating expenses by $50,000 per year for 10 years and to have a $40,000 MV at the end of the 10th year. Assume that the firm is in the federal taxable income bracket of $335,000 to $10,000,000 and that the state income tax rate of 7.5%. State income taxes are deductible from federal taxable income. This machinery is to be depreciated using the MACRS (GDS). Develop the BTCFs and ATCFs and compute for the respective PWs at EOY O using an MARR of 12%. EOY Before. Tax Cash Depreciation {xx.xx} ($) Flow {xx.xx) ($) Taxable Income (xx.xx) ($) Cash Flow for Income (xx.xx) ($) 0 1 [Select) 2 3 Select 4 5 6 EOY Before- Tax Cash Depreciation (xx.xx} ($) Flow {xx.xx) ($) Taxable income {xx.xx) ($) Cash Flow for Income (xox.xx) ($) 0 1 [Select) 2 3 Select) 4 5 6 7 8 Select) 9 10 PW(O) using MARR Taxable income (xx.xx} ($) Cash Flow for Income Taxes [xx.xx) (5) After-Tax Cash Flow (xx.xx} ($) Select 1 Select) Select) Select)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Management

Authors: Geert Bekaert, Robert J. Hodrick

1st Edition

0131163604, 9780131163607

More Books

Students also viewed these Finance questions

Question

Describe the challenges in developing rules for semantics.

Answered: 1 week ago