Determine the profitability of the laser

Assignment Help Business Economics
Reference no: EM132503760

A company is considering the purchase of an industrial laser for $150,000. The device has a useful life of five years and a salvage (market) value of $30,000 at the end of those five years. The before-tax cash flow is estimated to be $45,000 per year. The laser would be depreciated using MACRS with a recovery period of three years. If the effective income tax is 25% and the after-tax MARR is 15%, use the PW method on an after-tax basis to determine the profitability of the laser and make a recommendation.

Reference no: EM132503760

Questions Cloud

Prepare stockholders section of a classified balance sheet : On December 15, Ziggy Corp. split common stock 2 shares for 1. Prepare the Stockholders' section of a classified balance sheet as of December 31, 2019
Calculate the amount of cash to report in the balance sheet : Currency located at the company $675 Supplies 1,700 Short-term investments that mature within three months 1,575. Calculate the amount of cash to report
MBA717 Strategic Development Assignment : MBA717 Strategic Development Assignment Help and Solution, Assessment Writing Service - Be able to evaluate the contribution of strategic frameworks
What is the amount of the deferred income tax expense : G corp. began operations in January x1. The marginal tax rate is 34%. What is the amount of the deferred income tax expense
Determine the profitability of the laser : If the effective income tax is 25% and the after-tax MARR is 15%, use the PW method on an after-tax basis to determine the profitability of the laser and make a
Employers and employees when the cpi : Assume wage negotiations are done and agreed based on the CPI. Briefly explain what happens to employers and employees when the CPI is downwardly biased
Calculate and explain how you obtained the figure : In the country of Symposia, we have the following information for the year 2019:
How many people are unemployed : -The current unemployment rate is 7% and the number of people in the labour force is 250,000. Use this information to find the following.
Measure of each country respective standard of living : Which set of figures would give you a better measure of each country's respective standard of living? Justify your answer.

Reviews

Write a Review

Business Economics Questions & Answers

  Imposing a tax on those who watch the fireworks

What do you say to the idea of a city government imposing a tax on those who watch the fireworks? Give me two reasons to support it, and two reasons

  Project risk management planning process

You are the project manager for your organization and you're working with your project team and stakeholders to develop the risk management plan. According to the PMBOK Guide, what is the only output of the project's risk management planning proce..

  Explain the difference between point and arc estimates

Define elasticity of demand and explain the difference between point and arc estimates. Why are some commodities classified as elastic while others are termed inelastic? Explain why elasticity of demand for a particular commodity will be greater:

  Expected annual net profit for the project

If the initial investment is a project is $100,000 and the expected annual net profit for the project is $20,000, the payback period is:

  Test the claim that the mean of the population

Using the Critical Value Method, test the claim that the mean of the population is greater than 55. Take a=5%.

  Programming company of negligence

The automobile dealer accused the programming company of negligence. Do you agree?

  Transplant on the black market

In the United States, there are 123,000 people in need of an organ. How much are your body parts worth?

  Home-building company

Suppose you are the manager of a home-building company and the government is considering eliminating the deduct-ability of mortgage payments interest.

  Qin year 1 and year 2 there are two products produced in a

q.in year 1 and year 2 there are two products produced in a given economy computers and bread. suppose that there are

  What will the percentage change in quantity demanded

When the price of pizza was $10.00 for a medium pizza, students at SUNY Canton consumed 600 pizzas per week. Calculate the price elasticity of demand for medium pizzas for SUNY Canton students. You must show your work to receive credit for your calcu..

  Four conditions required for a competitive market

Suppose that the (inverse) demand curve for Cranberries is given by P = 40 - 6Q and TC = $4Q + $3Q2

  Briefly outline the major steps in a marketing plan

Please list and Briefly outline the major steps in a marketing plan. For each step, you should have a summary or description of what would be expected in that step. How do you desgign and structure the marketing plan is up to you.

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