NUmber 10)

Number 12)

Number 14)

Quip Corporation wants to purchase a new machine for $286,000. Management predicts that the machine will produce sales of $186,000 each year for the next 8 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $80,000 per year. The firm uses straight-line depreciation with an assumed residual (salvage) value of $50,000. Quip's combined income tax rate, t, is 30%. What is the expected net income (after tax) in Year 3 if the proposed investment is undertaken? Round answer to nearest whole dollar. Multiple Choice $53,550. $47,550. $83,550. $81,550. $39,550. Quip Corporation wants to purchase a new machine for $298,000. Management predicts that the machine will produce sales of $205,000 each year for the next 4 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $72,000 per year. The firm uses straight-line depreciation with an assumed residual (salvage) value of $50,000. Quip's combined income tax rate, t, is 50%. What is the annual accounting (book) rate of return (ARR) for the proposed investment, based on the initial investment? (Round answer to nearest whole percentage.) Multiple Choice 18%. 12%. 22%. 15%. 10%. Quip Corporation wants to purchase a new machine for $300,000. Management predicts that the machine will produce sales of $200,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $80,000 per year. The firm uses straight-line depreciation with an assumed residual (salvage) value of $50,000. Quip's combined income tax rate, t, is 40%. What is the expected net income (after tax) in Year 3 if the proposed investment is undertaken? Round answer to nearest whole dollar. Multiple Choice $42,000. $36,000. $70,000. $72,000. $28,000