Consider a machine that will reduce after-tax operating cost

Assignment Help Financial Accounting

Reference no: EM133436016

Question: Consider a machine that will reduce after-tax operating costs by $2,500 per year over a five- year period. Assume no changes in net working capital and a salvage value of $9,000. Further assume that the machine belongs in a 25% CCA class, a marginal tax rate of 30%, and a required return of 12%. The machine costs $15,000. What is the project NPV? Will it be accepted or not?

Reference no: EM133436016

Questions Cloud

What effect is gained by showing elsinore, the castle : What effect is gained by showing Elsinore, the castle, surrounded by the sea, as Zeffirelli does? Shakespeare would not have seen it and may well have

Show production budget by quarters for the first nine months : Show production budget by quarters for the first nine months of 2022. Opening inventory was 3,000 units.

Explain how we know the advantages you mentioned : explain how we know the advantages/disadvantages you mentioned; are the sources human skeletons? Archaeology? Written descriptions

What is the face value of the the ten bonds : Ten bonds are purchased for $9,083.25 and are kept for 5 years. The bond coupon rate is 5% per year, payable annually.

Consider a machine that will reduce after-tax operating cost : Consider a machine that will reduce after-tax operating costs by $2,500 per year over a five- year period. Assume no changes in net working capital

Explain the source focusing on describing : explain the source focusing on describing your source, such as the author's qualifications and why was the source created. Describe the main ideas, arguments

What type of post-acute care (pac) does coastal medical : What type of post-acute care (PAC) does Coastal Medical Center (CMC) provide? What is its competition in this area?

What income tax rate is equivalent to this commodity tax : Now suppose an ad valorem tax of 25 percent is imposed on both food and music. What income tax rate is equivalent to this commodity tax?

Prepare the entries to record sales and collections : Prepare the entries to record sales and collections during the period. Prepare the entry to record the write-off of uncollectible accounts during the period

User Account

All Pages