Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help in this question, I have only 30 minutes and i need fast help please Question 9 of Question 9 3.5 points Save

I need help in this question, I have only 30 minutes and i need fast help please

image text in transcribed

image text in transcribed

Question 9 of Question 9 3.5 points Save Use the table below to answer this question MACRS 5-year property Year Rate 1 20.00% 2 32.0096 3 19.20 4 11.5296 5 11.5296 6 5.76% Ronnie's Custom Cars purchased some fixed assets two years ago for $85.000. The assets are classified as 5-year property for MACRS. Ronnie is considering selling these assets now so he can buy some newer fixed assets that utilize the latest in technology. Ronnie has been offered $44,500 for his old assets. What is the after tax salvage value if he accepts the offer and the tax rate is 34 percent? O $40.800.00 O $37,693.20 O $34.363.92 O $43.242.00 O $44.500.00 Question 10 Information regarding two projects is presented below: Measure IRR NPV Payback period Risk level Project #1 896 $250,000 Project #2 1096 $140,000 4.5 years High 3.4 years Low If the projects are mutually exclusive, which project(s) should the company select, and why is that the correct decision? Project #1 because it has the lowest risk and shortest payback period. O Project #2 because it has the highest IRR O Project #1 because it has the highest NPV. Accept both projects, because the NPV of both projects is positive

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_2

Step: 3

blur-text-image_3

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

Governance Of Financial Management

Authors: John Carver, Miriam Carver

1st Edition

0470392541, 9780470392546

More Books

Students also viewed these Finance questions

Question

Describe the problems in the administration of disciplinary action.

Answered: 1 week ago

Question

Explain discipline and disciplinary action.

Answered: 1 week ago