Question
question 1 a mew machine will cost $720000 it is in a CCA class pool that uses a declining balance rate of 20% the company
question 1 a mew machine will cost $720000 it is in a CCA class pool that uses a declining balance rate of 20% the company tax rate is 42% and it requires a 12% rate of return on investments calculate the present value of the tax shield the first year assuming the savings occur at year end 1-$54000 2-$60480 3-$37285.71 4-$30240 5-$27000 question 4 soda manufacturing company provides vending machines for soft drink manufactures. the company has been investing a new piece of machinery for its production department the old equipment has a remaining life of 1 year and no sales value the new equipment has a value of $52650 with a three year life the expected additional cash inflows are $25000 per year end of year payments what is the internal rate of return ? 1-16 percent 2-8 percent 3-20 percent 4-12 percent 5-24 percent
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