Please answer these 4 questions. Thank you!!
Cul umber, Inc, operates in a state where companies face a tax rate of 9 percent co taxable income up to $1,000,000 and 10,5 percent on taxable income above $1,000,000. Assume the federal tax rate is a flat 21 percent and Cullumber, Inc-, will have taxable income of $1.640.000 for the year, (Round answers to 1 decimal place, e.9. 15.5%.) What is the firm's average blended federal and state tax rate? fverage blended state and tederal tax rate What is the firm's marginal blended federal and state tax rate? If Culumber, Inc., is evaluating a new investment, what tax rate should it use for NPV calculations? Marginai blended federal and state taxrate When evalaating a new investinent Cillumber. Inc, should use the eTextbook and Media Given the desire to cut carbon emissions, Ford is considering introducing a new production line of electric sedans. The expected annual unit sales of the electric cars is 39,000 , and the selling price is $22,000 per car. Variable costs of production are $14,000 per car. The fixed overhead, including salary of top executives is $80 million per year. However, the introduction of the electric sedans will decrease Ford's sales of regular sedans by 8.000 cars per year; the regular sedans have a unit price of $20.000, a unit variable cost of $12,000, and fixed costs of $250.000 per year. Depreciation costs of the new production line are $51,000 per year. The marginal tax rate is 29 percent. What is the incremental annual cash flow from operations? Incremental annual cash flow from operations Sanchill Manufacturing management is considering overhauling their existing line, which currently has both a book value and a salvage value of $0. It would cost $230,000 to overhaul the existing line, but this expenditure would extend its usefullife to five years. The line would have a $0 salvage value at the end of five years. The overhaul outlay would be capitaized and depreciated using MACR 5 threeyear schedule. The tax rate is 28 percent, the opportunity cost of capital is 10 percent. The NPV of the new productionline is . \$430.543. (Do not round discount factor. Round your intermediate calculations and final answer to the nearest dollar, e.g. 5.275. Enter negative amounts using either a negative sign preceding the number e.g. 45 or parentheses es. (45).) EXHIBIT 11.5 MACRS Depreciation Schedules by Allowable Recovery Period The MACRS schedule lists the tax depreciation rates that firms use for assets placed into service after the Tax Reform Act of 1986 went into effect. The table indicates the percentage of the cost of the asset that can be depreciated in each year during the period that it is being used. Year 1 is the year in which the asset is first placed in to service. Question 15 of 30 Should Sandhill replace or renovate the existing line? Sandhill should the existing line. Current Attempt in Progress Monty's Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for $20, then the demand for the product will be 15,000 bottles per year, Sales will equal only 88 percent of this amount if the price is raised 20 percent. Monty's variable cost per botte is $10, and the total fixed cash cost for the year is $100.000. Depreciation and amortization chargos are $20.000, and the firmhas a 30 percent marginal tax rate. Management anticipates an increased working capital need of $3.000 for the year. What will be the effect of a 20 percent price increase on the firm's FCF for the year? Excel Template. (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have difterent values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problemJ At $20 per bottie the Montys FCF is $ and at the new price Monty's FCF is $ By increasing the price of a bottie by 20 percent, the FCF by $
