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show all work 1. Maple Inc. just purchased a machine for $20,000 to use on a new project. The shipping costs are $4,500 and installation

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1. Maple Inc. just purchased a machine for $20,000 to use on a new project. The shipping costs are $4,500 and installation charges total $2,000. Maple is anticipating an increase of S10,000 in net working capital requirements. The machine is being depreciated straight line over 7 years to an estimated salvage value of $2,000. What is the annual depreciation expense? 2. Cowboy Video wants to expand their DVD library to 9,000 DVDs. The purchase price of the additional DVDs is $90,000 and the shipping costs are another $4,500. The owner will have to spend an additional $12,000 for shelves. He is expects there to be an increase in net working capital requirements of $6,500 and interest expenses to add $7,000 to the operating costs. What is the net investment for Cowboy Video for this project? 3. Okie Industries purchased a CNC machine 5 years ago for $125,000. It is being depreciated on a straight-line basis over 15 years to an estimated salvage value of S0. It could be sold now for $50,000. The firm is considering selling if and purchasing a new one. The new CNC machine would cost $208,750 installed and would be depreciated straight-line over 10 years to an estimated S0 salvage value. The firm's marginal tax rate is 40%. Determine the net investment if the old machine is sold and the new one purchased 4. Ten years ago T-Bone Company purchased a drill for $250,000. It was being depreciated on a straight line basis to an estimated $25,000 salvage value over a 15 year period. The firm is considering selling the old drill and purchasing a new one that would cost S500,000. The firm's marginal tax rate is 40%. Determine the N1NV required to purchase the new drill, if the old drill is sold for $100,000

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