Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Holliday Manufacturing is considering the replacement of an existing machine. The new machine costs $1.21 million and requires installation costs of $148,000. The existing machine can be sold currently for $175,000 before taxes. It is 2 years? old, cost $801,000 ?new, and a remaining useful life of 5 years. It was being depreciated under MACRS using a? 5-year recovery period, and therefore has the final 4 years of depreciation remaining. If it is held for 5 more? years, the? machine's market value at the end of year 5 will be $0. Over its? 5-year life, the new machine should reduce operating costs by $343,000 per year. The new machine will be depreciated under MACRS using a? 5-year recovery period. The new machine can be sold for $194,000 net of removal and cleanup costs at the end of 5 years. An increased investment in net working capital of $25,000 will be needed to support operations if the new machine is acquired. Assume that the firm has adequate operating income against which to deduct any loss experienced on the sale of the existing machine. The firm has a 9.4% cost of capital and is subject to a 40% tax rate.
Question 1: Calculate the initial investment.(round the nearest dollar.)
Question 2: Calculate the operating cash flows from the existing machine(Round the nearest dollar.)
Question 3: Calculate the operating cash flows from the new machine(Round the nearest dollar.)
Question 4: Calculate the Incremental Cash flows. (Round the nearest dollar.)
If this dividend was expected to grow at a 12 percent forever, what is the firm expected or required rate on equity using a dividend discount model approach?
Bill and Mable are married and own a house. The deed to the house clearly states that title to the house is as follows: "Bill and Mable as joint tenants with right of survivorship." Unknown to Mable, Bill gives his interest in the house to his first-..
Find the net cash used for investing activities for the year ended 30 June 20X1. Accumulated depreciation for equipment that was sold: $310,000
Write a 175 word minimum, 1,050 word maximum Comparative Analysis paper using the financial statements of Amazon, Inc. presented in Appendix D.
overhead variancesthe following calendar year information about the acme corporation is available on december
What are the cash payment for operating expenses reported on the cash flow statement using the direct method? Operating expenses other than depreciation
Capilla Company experienced an unfavorable sales volume variance and an unfavorable sales price flexible budget variance. Which of the following is a logical explanation for these variances?
Prepare the necessary general journal entries, if any, to revalue the building and the equipment as at December 31, 2019, using the proportionate method.
Puchalla Corporation sells a product for $100 per unit. The product's current sales are 12,100 units and its break-even sales are 10,406 units. The margin of safety as a percentage of sales is closest to:
Provide all the journal entries in 20x3 and 20x4.In January 20x4, Jared incurred 9,000 of legal fees in a successful defense of its patent.
XYZ Inc. sells on terms of 2/10, net 30. Total sales for the year are $1,000,000. Consider that 30 percent of the customers take discounts and pay on the 10th day, while the other 70 percent pay, on average, 45 days after their purchases. What is the..
Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically and chemically treated to separate their fibers. De..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd