Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

thanks in advance Henredon purchases a high-precision programmable router for shaping furniture components for $190,000. It is expected to last 12 years and have a

image text in transcribed

image text in transcribed

thanks in advance

Henredon purchases a high-precision programmable router for shaping furniture components for $190,000. It is expected to last 12 years and have a salvage value of $5,000. It will produce $45,000 in net revenue each year during its life. Corporate income taxes are 40 percent, and the after-tax MARR is 10 percent. Determine the ATCF for each year and the after-tax PW, AWIRR, and ERR, if the router is kept for 12 years. Click here to access the TVM Factor Table Calculator Part b Your answer is partially correct. Use MACRS-GDS and state the appropriate property class. End of Year ATCF 0 $ 27151 1 $ 46531 2 $ 33231 3 $ 23731 4 $ 16967 5 $ 16948 6. $ 16967 7 8474 8 $ 0 9 $ 0 10 $ 0 11 $ 0 12 $ 0 After-tax PW: $ After-tax PW:$ After-tax AW: $ For dollar amounts, carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +10. After-tax IRR: % After-tax ERR: % For rates, carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is +0.2. Property Class: 7-Year Property Henredon purchases a high-precision programmable router for shaping furniture components for $190,000. It is expected to last 12 years and have a salvage value of $5,000. It will produce $45,000 in net revenue each year during its life. Corporate income taxes are 40 percent, and the after-tax MARR is 10 percent. Determine the ATCF for each year and the after-tax PW, AWIRR, and ERR, if the router is kept for 12 years. Click here to access the TVM Factor Table Calculator Part b Your answer is partially correct. Use MACRS-GDS and state the appropriate property class. End of Year ATCF 0 $ 27151 1 $ 46531 2 $ 33231 3 $ 23731 4 $ 16967 5 $ 16948 6. $ 16967 7 8474 8 $ 0 9 $ 0 10 $ 0 11 $ 0 12 $ 0 After-tax PW: $ After-tax PW:$ After-tax AW: $ For dollar amounts, carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +10. After-tax IRR: % After-tax ERR: % For rates, carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is +0.2. Property Class: 7-Year Property

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Interpreting Company Reports And Accounts

Authors: Geoffrey Holmes, Alan Sugden, Paul Gee

10th Edition

0273711415, 9780273711414

More Books

Students also viewed these Accounting questions

Question

Define evaluation and explain its role in HRD

Answered: 1 week ago

Question

Develop expertise as a facilitator of a training topic or module

Answered: 1 week ago