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please show all work! Below is a copy of the MACRS table for your reference. THBL 9.1: MACRS DEPRECLATONSCHEDELES 1. Global has just purchased a
please show all work!
Below is a copy of the MACRS table for your reference. THBL 9.1: MACRS DEPRECLATONSCHEDELES 1. Global has just purchased a new work cell for their production facility. The work cell had a purchase price of $220,000. The work cell will be depreciated using a 3-year MACRS schedule. If the tax rate facing Global is 21% and cost of capital is 11%, what is the PV of the depreciation tax shield over the full life of the work cell? 2. Today, S. Garcia Corporation purchased an assembly line for $500,000. The assembly line will be straight-line depreciated over a 20 year period. The company plans on selling the assembly line in exactly 5 years for $300,000. If the tax rate facing the company is 21%, what will be the net salvage value for selling the machine in five years Step by Step Solution
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