Achine qualifies as five-year recovery asset

Assignment Help Financial Management

Reference no: EM131056370

Anthony, Ltd. purchased a duplicating machine for $15,000. This machine qualifies as a five-year recovery asset under MACRS. The company has a tax rate of 33%. The MACRS depreciation rates are as follows: Year 1: 20.00%, Year 2: 32.00%, Year 3: 19.20%, Year 4: 11.52%, Year 5: 11.52%, Year 6: 5.76%.

1. Given that the company sells the machine after four years, what is the NPV of the MACRS method for the machine? The companies WACC is 8%.

Reference no: EM131056370

Questions Cloud

Finding out about the social insurance industry : As an understudy finding out about the social insurance industry, you presumably have desires of working in a human services structure. What is a medicinal services structure? In what sort of structure would you need to work?

Calculate the annual worth of this investment : An automobile-manufacturing company is considering purchasing an industrial robot to do spot welding, which is currently done by skilled labour. The initial cost of the robot is $ 224,667 , and the annual labour savings are projected to be $ 107,910 ..

Great deal of pre-planning : Major projects require a great deal of pre-planning so that all employees and sub-contractors can use their time efficiently and effectively. After all, time is money. How is time wasted in the management of projects? Explain. As the new project m..

Should the company fund a working capital : what are some of the issues Felicia and Fred can do to optimally manage? What are the risks of poor management of the element you selected - should the company fund a working capital increase with short-term debt or long-term debt?

Achine qualifies as five-year recovery asset : Anthony, Ltd. purchased a duplicating machine for $15,000. This machine qualifies as a five-year recovery asset under MACRS. The company has a tax rate of 33%. The MACRS depreciation rates are as follows: Year 1: 20.00%, Year 2: 32.00%, Year 3: 19.20..

Nonparametric comparison with grouped data : Nonparametric comparison with grouped data and progressive censoring. For motivation, first see Problem 9.6, where interval data on K groups of transformers were pooled to fit a nonparametric multinomial model to the data. The following (log) like..

Leadership development coach : For the Session Long Projects you will also be applying the concepts from the background materials. But instead of applying them to yourself, you will imagine that you are a leadership development coach who is hired to by organizations to diagnosi..

Recognizing crime trends : Read the "Overview" included on the first page and view the "Five-Year Trend Violent Crime Offense Figure" at the bottom of the page. Next, go to Table 4 on the right hand side of the page and follow the link to additional crime statistics by Regi..

Determine the expected time to meet this probability : Determine the expected time to meet this probability under each of the conditions -

User Account

All Pages