machine was purchased 3 years ago for an installed cost of $10,000. The fem is depreciating the 524 200 and requires $1.500 in installation costs. The firm is subject to a 40% tax rate in each of the Initial investment at various sale prices Edwards Manufacturing Company (EMC) considering replacing one machine with another the machine under MACRS, using a 5-year recovery period (See table for the applicable depreciation percentages. The new machine co following case calculate the investment for the replacement EMC sells the old machine for $11,200. b. EMCs the old machine for $6.910. e EMC se's the old machine for $2,500 d. E s the old machine for $1.420 Calcune the investment at verous we pres below a. EMC the old machine for $11.200. Round to the nearest dollar Costnews Toon matalled cost s Proceeds from soo Taxon of b. EM the machine for $6.910. Round to the rear dolar Enter any number in the edit fields and then continue to the next question 0 Data Table bin installed cost of $10,000. The firm is de posts. The firm is subject to a 40% tax rate. sale prices Edwards Man ga 5-year recovery period. initial investment for the repl for $11,200. for $6,910 for $2.900 for $1,420 mt at various sale prices below for $11,200. (Round to the (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 7 years 10 years 33% 20% 10% 45% 32% 25% 18% 15% 18% 14% 5 years (a) 19% 12% 12% 12% 99% 8% Id assets 6% Total 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 e for $6,910. (Round to the it fields and then continue Print Done Initial investment at various sale prices Edwards Manufacturing Company (EMC) is considering replacing or machine under MACRS, using a 5-year recovery period. (See table for the applicable depreciation percenta following cases, calculate the initial investment for the replacement. a. EMC sells the old machine for $11,200. b. EMC sells the old machine for $6,910. c. EMC sells the old machine for $2,900. d. EMC sells the old machine for $1,420. b. EMC sells the old machine for $6,910. (Round to the nearest dollar.) (b) Cost of new asset $ Installation cost Total installed cost 24,200 1,930 26,130 $ Proceeds from sale of old asset Tax on sale of old asset Total after-tax proceeds $ $ $ Initial investment c. EMC sells the old machine for $2,900. (Round to the nearest dollar.) (c) Initial investment at various sale prices Edwards Manufacturing Company (EMC) is considering replacing machine under MACRS, using a 5-year recovery period. (See table for the applicable depreciation percent following cases, calculate the initial investment for the replacement. a. EMC sells the old machine for $11,200. b. EMC sells the old machine for $6,910. C. EMC sells the old machine for $2,900. d. EMC sells the old machine for $1,420. c. EMC sells the old machine for $2,900. (Round to the nearest dollar.) $ Cost of new asset Installation cost Total installed cost 24,200 1,930 $ 26,130 Proceeds from sale of old asset $ $ Tax on sale of old asset Total after-tax proceeds $ Initial investment d. EMC sells the old machine for $1.420. (Round to the nearest dollar.) (d) Enter any number in the edit fields and then continue to the next question. Initial investment at various sale prices Edwards Manufacturing Company (EMC) is considering rer machine under MACRS, using a 5-year recovery period. (See table for the applicable depreciation following cases, calculate the initial investment for the replacement. a. EMC sells the old machine for $11,200. b. EMC sells the old machine for $6,910. c. EMC sells the old machine for $2,900. d. EMC sells the old machine for $1,420. Tax on sale of old asset Total after-tax proceeds Initial investment $ d. EMC sells the old machine for $1,420. (Round to the nearest dollar.) Cost of new asset Installation cost Total installed cost (d) 24,200 1,930 26,130 Proceeds from sale of old asset Tax on sale of old asset Total after-tax proceeds $ $ $ L Initial investment $ Enter any number in the edit fields and then continue to the next
