Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help with a, b, c, d in the format shown below Initial investment at various sale prices Edwards Manufacturing Company (EMC) is considering replacing

need help with a, b, c, d in the format shown below
image text in transcribed
Initial investment at various sale prices Edwards Manufacturing Company (EMC) is considering replacing one machine with another. The old machine was purchased 3 years ago for an installed cost of $10,000. The firm is depreciating the machine under MACRS, using a 5-year recovery period. (See table for the applicable depreciation percentages.) The new machine costs $23,900 and requires 52,070 in installation costs. The firm is subject to a 40% tax rate. In each of the following cases, calculate the initial investment for the replacement a. EMC sells the old machine for $12,300. b. EMC sells the old machine for $6,920 c. EMC sells the old machine for $2,900 d. EMC sells the old machine for $1,500 Calculate the initial investment at various sale prices below a. EMC sells the old machine for $12,300 (Round to the nearest dollar.) (a) Cost of new asset S Installation cost Total installed cost 5 5 Proceeds from sale of old asset Tax on sale of old asset Total after-tax proceeds $ $ Initial investment $ brary Data table - X kulator ources (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) ody Mod otion Too 259 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 33% 20% 14 2 45% 324 3 15 19% 189 4 75 129 12 5 129 9 ON 7 9 49 9 10 11 Total 100% 100N 1001 10 years 109 18% 149 1295 9 59 7 6 0 09 View an example wer 100

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

The Financialized Economy

Authors: Alexander Styhre

1st Edition

0367754568, 978-0367754563

More Books

Students also viewed these Finance questions

Question

Do employers have rights? If so, what are these rights?

Answered: 1 week ago

Question

Carefully describe a futures contract.

Answered: 1 week ago

Question

Identify the different methods employed in the selection process.

Answered: 1 week ago

Question

Demonstrate the difference between ability and personality tests.

Answered: 1 week ago