Question 11 pts A company is considering investing in expanding its manufacturing facility. The total cost of the expansion will be $1,500,000, of which $400,000 will be in depreciable assets. The company's tax rate is 35% and the company uses the 5 year MACRS depreciation table (below). If the company expects $400,000 in incremental EBDT in year 1, calculate its cash flow for year 1 (to be used in capital budgeting analyses). MACRS 5 year Table Year 1 0.2 Year 2 0.32 Year 3 0.192 Year 4 0.115 Year 5 0.115 Year 6 0.058 Group of answer choices $288,000.00 $208,000.00 $80,000.00 $112,000.00 Flag question: Question 2 Question 21 pts A company sells an old machine for $250,000. The machine had a book value of $185,000. The company's tax rate is 35%. What is the tax liability (or credit) resulting from the sale of the old machine? Group of answer choices $22,750 Tax Credit $22,750 Tax Liability (owe) $185,000 Tax Liability (owe) $65,000 Tax Liability (owe) Flag question: Question 3 Question 31 pts A company decides to invest in replacing an old machine. The company buys a new machine for $125000. It sells the old machine for $25,000. The old machine had a book value of $30,000 at the time it was sold. The company's tax rate is 35%. What is the net cost of the investment in the new machine (to be used in capital budgeting analysis)? Group of answer choices $25,000.00 $98,250.00 $125,000.00 $100,000.00 Flag question: Question 4 Question 41 pts A company is considering investing in expanding its factory. The total cost of the expansion will be $300,000, of which $80,000 will be in depreciable assets. The company's tax rate is 35% and the company uses the 5 year MACRS depreciation table (below). If the company expects $75,000 in incremental EBDT in year 1, calculate its cash flow for year 1 (to be used in capital budgeting analyses). MACRS 5 year Table Year 1 0.2 Year 2 0.32 Year 3 0.192 Year 4 0.115 Year 5 0.115 Year 6 0.058 Group of answer choices $38,350.00 $54,350.00 $16,000.00 $59,000.00 Flag question: Question 5 Question 51 pts A company will invest in an addition to its assembly plant. The investment has a total cost of $25,,000,000 of which the total depreciable assets cost $12,575,000. Based on the 5 year MACRS depreciation schedule below, calculate the amount of depreciation associated with this investment in year 1. MACRS 5 year Table Year 1 0.2 Year 2 0.32 Year 3 0.192 Year 4 0.115 Year 5 0.115 Year 6 0.058 Group of answer choices $2,515,000.00 $5,000,000.00 $2,414,400.00 $4,024,000.00 Flag question: Question 6 Question 61 pts A machine has a cost of $175,000. Based on the 5 year MACRS depreciation schedule below, calculate the amount of depreciation for this machine in year 5. MACRS 5 year Table Year 1 0.2 Year 2 0.32 Year 3 0.192 Year 4 0.115 Year 5 0.115 Year 6 0.058 Group of answer choices $20,125.00 $56,000.00 $35,000.00 $10,150.00 Flag question: Question 7 Question 71 pts A company is considering investing in expanding its factory. The total cost of the expansion will be $1,500,000, of which $600,000 will be in depreciable assets. The company's tax rate is 35% and the company uses the 5 year MACRS depreciation table (below). If the company expects $400,000 in incremental EBDT in year 1, calculate its cash flow for year 1 (to be used in capital budgeting analyses). MACRS 5 year Table Year 1 0.2 Year 2 0.32 Year 3 0.192 Year 4 0.115 Year 5 0.115 Year 6 0.058 Group of answer choices $182,000.00 $280,000.00 $302,000.00 $400,000.00 Flag question: Question 8 Question 81 pts A company sells an old machine for $50,000. The machine had a book value of $60,000. The company's tax rate is 35%. What is the tax liability (or credit) resulting from the sale of the old machine? Group of answer choices $3,500 Tax Liability (owe) $3,500 Tax Credit $10,000 Tax Credit $60,000 Tax liability (owe) Flag question: Question 9 Question 91 pts A company will invest in an addition to its headquarters. The investment has a total cost of $1,235,000 of which the total depreciable assets cost $55,000. Based on the 5-year MACRS depreciation schedule below, calculate the amount of depreciation associated with this investment in year 5. MACRS 5 year Table Year 1 0.2 Year 2 0.32 Year 3 0.192 Year 4 0.115 Year 5 0.115 Year 6 0.058 Group of answer choices $11,000.00 $142,025.00 $10,560.00 $6,325.00 Flag question: Question 10 Question 101 pts A company sells an old machine for $55,000. The machine had a book value of $32,000. The company's tax rate is 35%. What is the tax liability (or credit) resulting from the sale of the old machine? Group of answer choices $8,050 tax credit $8,050 tax liability (owe) $23,000 tax liability (owe) $23,000 tax credit