Determine the after-tax net present worth of the assets

Assignment Help Econometrics

Reference no: EM13239714

speciality machining inc bought a new multi turret turning center for $250,000. the machine generated new revenue of $80,000 per year. operating costs for the machine averaged $10,000 per year. following IRS regulations, the machine was depreciated using the MACRS method, with a recovery period of 7 years. the center was sold for $75,000 after 5 years of service. the company uses an after-tax MARR rate of 12% and is in the 35% tax bracket. determine the after-tax net present worth of this asset over the 5-year service period.

Reference no: EM13239714

Questions Cloud

State ka and kb reactions proceed to nearly the same extent : Consider HA- the intermediate form of a diprotic acid. Ka for this species is 10-4 and Kb is 10-8. Nonetheless, the Ka and Kb reactions proceed to nearly the same extent when NaHA is dissolved in water. Can anyone explain that

Find the volume of the object : The mass density of an object is 16.0 g/cc, and its mass is determined to be 134 g. What is the volume of the object

How many days per year must he use car to justify purchase : Buy a new car for $14,500. Salvage value is expected to be about $5000 after 3 years. Maintenance and insurance cost is $1000 in the first year and increases at the rate of $500/year in subsequent years. Daily operating expenses are $50/day.

Find the mass of the object : The mass density of an object is 17.3 g/cc, and its volume is determined to be 28.2 cc, What is the mass of the object

Determine the after-tax net present worth of the assets : speciality machining inc bought a new multi turret turning center for $250,000. the machine generated new revenue of $80,000 per year. operating costs for the machine averaged $10,000 per year.

Methylene blue and diphenylbenzidine sulfonic acid are redox : Methylene blue and diphenylbenzidine sulfonic acid are redox indicators that turn from colorless in the reduced state to blue (methylene blue) or violet (diphenylbenzidine sulfonic acid) in the oxidized state. Indicate whether each is a suitable i..

A sample containing an unknown amount of arsenic trichlorid : A 2.983 gram sample containing an unknown amount of arsenic trichloride and the rest inerts was dissolved into a NaHCO3 and HCl aqueous solution. To this solution was added 1.910 grams of KI and 50.00 mL of a 0.00894 M KIO3 solution.

Find the astronauts tangential acceleration : Astronauts use a centrifuge to simulate the acceleration of a rocket launch. The centrifuge takes 40.0s to speed up from rest to its top speed of 1 rotation every 1.50s, What is the astronaut's tangential acceleration during the first 40.0s

Does the investment appear to be satisfactory : Xon, a small oil company, purchased a new petroleum drilling rig for $1,800,000. Xon will depreciate the drilling rig using MACRS depreciation. The drilling rig has been leased to a drilling company, which will pay Xon $450,000 per year for 8 year..

User Account

All Pages