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hi please help with all a through d thank you! Terminal cash flow Various lives and sale prices Looner Industries is currently analyzing the purchase
hi please help with all a through d thank you!
Terminal cash flow Various lives and sale prices Looner Industries is currently analyzing the purchase of a new machine that costs $162.000 and requires $19.700 in installation costs. Purchase of this machine is expected to result in an increase in not working capital of $30 400 to support the expanded level of operations. The firm plans to depreciate the machine under MACRS using a 5-year recovery period (son the table for the applicable depreciation porcentages) and expects to sell the machino to net $10.200 before taxes at the end of its usable life. The firm is subject to a 40% tax rate a. Calculate the final cash flow for a sablo Moot (1) 3 years (2) 5 years, and (3) 7 years b. Discuss the effect of usable on terminal cash flows using your findings in porta. c. Assuming a year usable, calculate the terminal cash flow it the machine were sold to net (1) 89,085 (2) $170,500 (before taxes) at the end of 5 years & Discuss the effect of sale price on terminal cash flow using your findings in parte. a. Calculate the terminal cash flow for a usable life of (1) 3 years. (2) 5 years, and (2) 7 years The following table can be used to move for the terminal cash flow (Round to the nearest dolor 3-year 10200 Data table Proceeds from sale of proposed asset - Tax on sale of proposed asset Total amor tax proced-now Change in net working capital Terminal cash flow $ $ $ $ (Click on the icon here in order to copy the contents of the datatable below into a spreadshot) a 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 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 124 125 12 5 12% 99 9 6 5% 9% 8% 7 0% 7 8 4 8% 9 6% 10 09 11 4% Totals 100% 100% 100% 100% Step by Step Solution
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