Compute the after-tax rate of return using straight line

Assignment Help Civil Engineering
Reference no: EM13298121

A $78,000 invtestment in machinery is proposed. It is anticipated that this investment will cause a reduction in net annual operating disbursements fo $16,300 a year for 12 years. The investement will be depreciated for income tax purposes for the

(a) years-digits method using a 12-year life and zero salvage value. The forecast of zero value is also to be used in the economy study. The applicable income tax rate is 48%. What are the prospective rates of return before and after income taxes?

(b) Compute the after-tax rate of return using straight line depreciation for tax purposes

(c) Computer the after-tax rate of return assuming a 10% investment tax credit taken at year zero.

Reference no: EM13298121

Questions Cloud

A certain metal oxide has the formula mo where m denotes : A certain metal oxide has the formula MO where M denotes the metal. A 36.46g sample of the compound is strongly heated in an atmosphere of hydrogen to remove oxygen as water molecules.
What distribution can be reasonably assumed for sample mean : On a particular highway, a permanent speed measuring device at one particular location has determined, over many months of observations, that the mean and standard deviation of vehicle speeds at that point are 52 miles per hour and 4 miles per hou..
What is an indigenous religion : What is an indigenous religion? What are some of the obstacles to understanding these religions
What is the stock worth : Suppose jc penneys has a nonmaturing perpetual preferred stock outstanding that pays 1.56 quarterly dividend and has a required return of 12% APR - 3% quarterly. what is the stock worth?
Compute the after-tax rate of return using straight line : A $78,000 invtestment in machinery is proposed. It is anticipated that this investment will cause a reduction in net annual operating disbursements fo $16,300 a year for 12 years. The investement will be depreciated for income tax purposes
Discussions about sex-sexuality and relationships : Sometimes it can be difficult for adults to know when to raise issues, but the important thing is to maintain an open relationship with children which provides them with opportunities to ask questions when they have them.
How fast are the rockets moving with respect to the earth : Two rockets approach earth from opposite directions at equal speeds relative to the earth. How fast are the rockets moving with respect to the earth
Which company would you value higher and why : Company B has expected earnings of $10 a share for three years only. Which company would you value higher and why?
Explain a certain metal oxide has the formula mo : A certain metal oxide has the formula MO where M denotes the metal. A 36.46g sample of the compound is strongly heated in an atmosphere of hydrogen to remove oxygen as water molecules.

Reviews

Write a Review

Civil Engineering Questions & Answers

  Determine the stress state at points a & b

CE 3303 – Solids – MWF – Spring 2014 - Homework Set 23, – The pipe shaft of the auger, rotating at a constant angular velocity, is subject to the axial force and torque shown. Determine the stress state at points A & B and show on a stress element.

  Calculate the largest tolerable internal crack length

Calculate the largest tolerable internal crack length for a 7075-T651 aluminum alloy component that is loaded to a stress one-half of its yield strength without catastrophic fracture. For the alloy, the plane strain fracture toughness is 24 and yi..

  Determine the contact surface area

Estimate the machines production under these conditions using the travel time curves given in the Caterpillar Performance handbook.

  What is the pressure difference between two ends of pipe

The pipe contains two 6 in steel elbows, two fully open gate valves, a fully open 90o angle valve, and a swing check valve. If the discharge end of the pipe is located 20 ft higher than the entrance, what is the pressure difference between the two..

  What do you mean by the term durability

What do you understand by the term durability? Compared to other considerations, how much importance should be given to durability in the design and construction of concrete structures?

  Show that the ratio of mean shear to the wall shear rate

for a laminar flow of a newtonian fluid in a tube of a circular cross section, show that the ratio of mean shear to the wall shear rate is 2/3

  What are the concentrations of cl- and br-

AGNO3 is added to a solution containing 0.001 mol Cl- amd 0.001 mol Br- per liter. What are the concentrations of Cl- and Br- remaining when AgCl just begins to precipitate?

  Four-lane freeway on a mountainous terrain

A four-lane freeway is on a mountainous terrain with 11-ft lanes, a 5-ft right-side shoulder, and a 3-ft left side shoulder. During the peak hour there are 12% trucks and buses and 6% recreational vehicles.

  Prepare and tabulate the design aid for partial flow

Prepare and tabulate the design aid for partial flow as per the equations for interpolation of velocity and diameter for corresponding flows.

  Determining tension in cables using crane hook

The casting has a mass of 3 Mg. Suspended in a vertical position and initially at rest, it is given an upward speed of V mm/s in 0.3s using a crane hook H. Determine the tension in cables AC and AB during this time interval if the acceleration is ..

  Crash at a railroad crossing

Due to a crash at a railroad crossing, an overpass is to be constructed on an existing level highway. the existing highway has a design speed of 50 mi/h.

  How much larger should street name be in order to be legible

street nam sizes on the signs at a certain location can be discerned by a person with 20/40 vision from a distance of 300 ft. how much larger should the street names be in order to be legible to a person with 20/50 vision from a distnace of 450 ..

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd