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HELP HELP HELP Data table 1 (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.)
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Data table 1 (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 5 years 7 years 10 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 15% 19% 18% 14% 4 7% 12% 12% 12% 5 12% 9% 9% 6 5% 9% 8% 7 9% 7% 8 4% 6% 9 6% 10 6% 11 4% Totals 100% 100% 100% 100% *These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention Print Done Terminal cash flow-Replacement decision Russell Industries is considering replacing a fully de will cost $194,000 and will require $29,000 in installation costs. It will be depreciated under MACRS working capital will be required to support the new machine. The firm's managers plan to evaluate the $15,400 before taxes; the new machine at the end of 4 years will be worth $78,000 before taxes. Calc subject to a 40% tax rate. The terminal cash flow for the replacement decision is shown below: (Round to the nearest dollar.) $ $ $ Proceeds from sale of new machine Tax on sale of new machine Total after-tax proceeds-new asset Proceeds from sale of old machine Tax on sale of old machine Total after-tax proceeds-old asset Change in net working capital $ $ Terminal cash flow $ considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine be depreciated under MACRS using a 5-year recovery period (see the table for the applicable depreciation percentages). A $28,000 increase in net 's managers plan to evaluate the potential replacement over a 4-year period. They estimate that the old machine could be sold at the end of 4 years to net worth $78,000 before taxes Calculate the terminal cash flow at the end of year 4 that is relevant to the proposed purchase of the new machine. The fimis Tumia cash flow-placement decision Russel nostres concercing deprecated machine that has a remaning of 10 years with a newer, more sophicated in water 194000 and will de 20.000 de station.com webe deprecated under MACS uning year recovery period to the for the applicatie depreciation percentages A $20,000 incennet were to worth new machine. The managers plans to evaluate the preplacement over a year period. Thay estimate that the old machine could be cold at the end of yearstone 315.00 for the town the end of 4 years win be worth $7.000 before Call the inal cash flow at the end of year that is relevant to the proposed purchase of the machine. The forma The show for the replacement de bolo Cound to the art olar) Po new Two Tax w Tamm Terminal cash flow Replacement decision Russell Industries is considering replacing a fully deprecated machine that has remaining use of 10 years with a newer, more sophisticated machine. The new machine 514.000 and will require 529.000 notion costs will be depreciated under MACRS using a 5-year recovery period (e the table for the applicable depreciation percentage) A $28.000 increment wine captal will be required to support the new machine. The firm's managers plan to evaluate the potentinoplacement over a year period. They estimate that the old machine could be sold at the end of 4 years to me 115.400 bertes the new machine at the end of 4 years will be worth $78,000 before taxes Calculate the terminal cash flow at the end of year that is relevant to the proposed purchase of the machine. The file subject to a 40 tax The cash flow for the replacement decision is shown below Round to the rest of Podrom new machine Taxonowmachine The proces new Prorom sale of machine This one of machine Tulow Change in twaal Tumesh Step by Step Solution
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