please show work, not on excell
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 $23,200 and requires $2.010 in instalation 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 $13,000 b. EMC sels the old machine for $6,940. c. EMC sells the old machine for $2,900. d. EMC sells the old machine for $1,490. Cost of new asset Installation cost Total installed cost Total after-tax proceeds Initial investment b. EMC sells the old machine for $6,940. (Round to the nearest dollar) (6) Proceeds from sale of old asset Tax on sale of old asset Total after-tax proceeds Intial Investment 5 View an example $ $ $ $ $ S $ (8,960) 16.250 Etext pages 23,200 2,010 25,210 Get more help. Clear all Check answer Spelauny Casit ows Amis considering renewing its equipment to meet increased demand for its product. The cost of equipment modifications is $1.98 million plus $111,000 in instaladon costs. The fem wit depreciate the equipment modifications under MACRS, using a 5-year recovery period (see table ) Additional sales revenue from the renewal should amount to $1.29 mation per year, and addisional eperating expenses and other costs (excluding depreciation and interest) will amount to 42% of the additional sales. The fem is subject s a. What incremental earings before depreciation, interest, and taxes will result from the renewal? rate of 40% (Nute Arawer the following questions for each of the next years) b. What incremental net operating profits after taxes will result from the renewa c. What incremental operating cash infows will result from the renewal? a. The incremental profits before depreciation and tax are $ (Round to the nearest dollar) View an example Etext pages Get more help. Data table (Click on the loon here in order to copy the contents of the data table below into a spreadsheet) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Recovery year T 8 9 10 11 Totals 3 years 33% 45% 15% 7% 100% Percentage by recovery year 5 years 7 years 20% 32% 19% 12% 12% 5% 14% 25% 18% 125 PN 2% 9 100% 10 years 10% 18% 14% 12% P% IN 7% 0% ON 6% 4% 100% 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 $23.200 and requires $2.010 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 $13,000 b. EMC sells the old machine for $6,940. c. EMC sells the old machine for $2,900. d. EMC sells the old machine for $1.490. Initial investment 16,250 b. EMC sells the old machine for $6,940. (Round to the nearest dollar) Cost of new asset Installation cost Total installed cost Proceeds from sale of old asset Tax on sale of old asset Total after-tax proceeds Initial investment View an example $ $ $ $ $ S (b) 23,200 2,010 25,210 Etext pages Get more help. Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Recovery year 2 3 9 10 11 Totals 3 years 33% 45% 15% 7% 100% Percentage by recovery year 5 years 7 years 14% 25% 20% 32% 19% 12% 12% 5% 100% 10% 12% 0% 0% 9% 4% 100% 10 years 10% 18% 14% 12% 9% 8% 18299977 6% 6% 100% A
