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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

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 2Question 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 3Question 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 4Question 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 5Question 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 6Question 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 7Question 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 8Question 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 9Question 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 10Question 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

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