Your company is considering a new project that will require $2,000,000 of new equipment at the start of the project. The equipment will have a depreciable life of 10 years and will be depreciated to a book value of $250,000 using straight-line depreciation. The cost of capital is 12 percent, and the firm’s tax rate is 39 percent. Estimate the present value of the tax benefits from depreciation?

$385,628

Depreciation = ($2,000,000 - $250,000)/10 = $175,000

$175,000 x .39 = $68250 tax savings each period.

Across the entire project, these savings will constitute a 10 period annuity.

Pmt = 68,250, FV = 0, I = 12, N = 10, PV = 385,627.72

Step-by-step explanation:

9 sandwiches per hour

step-by-step explanation:

when we have a rate, we want a 1 in the denominator

27/3 = 9

27 sandwiches/ 3 hours = 9 sandwiches/hour

answer is (b.

164 ft2)

a base  

18

b base  

7

h height  

8