Business, 02.12.2019 23:31 lizzie3545
You must evaluate a proposal to buy a new milling machine. the base price is $135,000, and shipping and installation costs would add another $8,000. the machine falls into the macrs 3-year class, and it would be sold after 3 years for $94,500. the applicable depreciation rates are 33%, 45%, 15%, and 7% as discussed in appendix 12a. the machine would require a $5,000 increase in net operating working revenues, but pretax labor costs would decline by $52,000 per year. the marginal tax rate is 35% and the wacc is 8%. also, the firm spent $4,500 last year investigating the feasibility of using the machine.
a. how should the $4,500 spend last year be handled?
b. what is the initial investment outlay for the machine for capital budgeting purposes, that is, what is the year 0 project cash flow?
c. what are the project’s annual cash flows during years 1, 2, and 3?
d. should the machine be purchased? explain your answer.
Answers: 2
Business, 22.06.2019 16:00
In macroeconomics, to study the aggregate means to study blank
Answers: 1
Business, 22.06.2019 21:00
Roberto and reagan are both 25 percent owner/managers for bright light inc. roberto runs the retail store in sacramento, ca, and reagan runs the retail store in san francisco, ca. bright light inc. generated a $125,000 profit companywide made up of a $75,000 profit from the sacramento store, a ($25,000) loss from the san francisco store, and a combined $75,000 profit from the remaining stores. if bright light inc. is an s corporation, how much income will be allocated to roberto?
Answers: 2
Business, 23.06.2019 00:40
The recognition of which of the following expenses exemplifies the application of matching expenses with the revenues they produced? multiple choice(a) cost of goods sold. (b) advertising.(c) president's salary.(d) research and development.
Answers: 3
You must evaluate a proposal to buy a new milling machine. the base price is $135,000, and shipping...
Mathematics, 11.06.2020 18:57
Physics, 11.06.2020 18:57
Mathematics, 11.06.2020 18:57
Chemistry, 11.06.2020 18:57
Spanish, 11.06.2020 18:57
Biology, 11.06.2020 18:57
Spanish, 11.06.2020 18:57
English, 11.06.2020 18:57
Social Studies, 11.06.2020 18:57
Mathematics, 11.06.2020 18:57
Mathematics, 11.06.2020 18:57
Mathematics, 11.06.2020 18:57