User Account

All Pages

Declining balance depreciation method

Assignment Help Macroeconomics
Reference no: EM131049083

1) An injectionmoldingmachine can be purchasedandinstalledfor $90,000. It is expected to be kept in service for eight years. It is believed that $10,000 can be obtained when the machine is disposed of the at the end of year eight. The net annual value added that can be attributed to this machine is constant over eight years and a mounts to $15,000. An effective income tax-rate of 40% is used by the company, and the before-tax MARR equals 25% per year. Use 150% Declining Balance depreciation method is

a) Determine the depreciation amounts in year one through eight?

b) Set up a table and calculate the ATCF for this machine.

c) Draw and compare the BTCF and ATCF cash flow diagrams.

d) Using IRR method, determine if the machine is purchased.

Reference no: EM131049083

Questions Cloud

What is the discounted payback period for these cash flows : An investment project has annual cash inflows of $4,100, $5,000, $6,200, and $5,400, for the next four years, respectively. The discount rate is 14 percent. What is the discounted payback period for these cash flows if the initial cost is $6,800? Wha..
Recently begun to acquire physician practice : A large community hospital, River Valley, has recently begun to acquire physician practices. At issue is whether to rename each acquired practice to "River Valley Associates" or to leave each name alone. What are the trade-offs River Valley should..
Issue of preferred stock outstanding-what is required return : Moraine, Inc., has an issue of preferred stock outstanding that pays a dollar 6.35 dividend every year in perpetuity. If this issue currently sells for dollar 92 per share, what is the required return?
Mutually exclusive projects-the crossover rate for projects : Swenson’s is considering two mutually exclusive projects, Projects A and B, and has determined that the crossover rate for these projects is 11.7 percent.
Declining balance depreciation method : The net annual value added that can be attributed to this machine is constant over eight years and a mounts to $15,000. An effective income tax-rate of 40% is used by the company, and the before-tax MARR equals 25% per year. Use 150% Declining Bal..
Using relevant international marketing concepts : Using relevant international marketing concepts, critically analyse the claim that a ‘glocalised' marketing approach is the key to success for international companies.
About new piece of equipment for its production process : The CEO of Dynamic Manufacturing was at a conference and talked to a supplier about a new piece of equipment for its production process that she believes will produce ongoing cost savings. Beyond financial measures, what other considerations would yo..
Rolling out this new company-wide quality initiative : Tasks for Part 2 will be completed in Week 5 and will be 250-300 words. The project deliverables for this week are as follows:Week 5: Roll-Out
The required rate of return on the market : The risk-free rate of return is 6%, the required rate of return on the market is 10%, and High-Flyer stock has a beta coefficient of 2.5. If the dividend per share expected during the coming year, D1, is $2.20 and g = 5%, at what price should a share..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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