Macrs accelerated allowances produce

Assignment Help Financial Management

Reference no: EM131842030

1. Which of the following statement completions is incorrect? For a profitable firm, when MACRS accelerated depreciation is compared to straight-line depreciation, MACRS accelerated allowances produce

a. Higher depreciation charges in the early years of an asset's life.

b. Larger cash flows in the earlier years of an asset's life.

c. Larger total undiscounted profits from the project over the project's life.

d. Smaller accounting profits in the early years, assuming the company uses the same depreciation method for tax and book purposes.

e. None of the above. (All of the above are correct.)

2. The Adept Co. is analyzing a proposed project. The company expects to sell 3,300 units, give or take 4 percent. The expected variable cost per unit is $11 and the expected fixed costs are $12,500. Cost estimates are considered accurate within a plus or minus 2 percent range. The depreciation expense is $2,000. The sale price is estimated at $19 a unit, give or take 2 percent. What is the contribution margin under the expected case scenario?

$2.67

$3.00

$7.92

$8.00

$8.72

Reference no: EM131842030

Questions Cloud

Dependent on the consequences of our actions : What does his reasoning have to say about whether the morality of our actions can be dependent on the consequences of our actions?

Philosophical question and a scientific question : Briefly explain one major difference between a philosophical question and a scientific question.

Conduct sensitivity analysis by independently investigating : You are now to conduct sensitivity analysis by independently investigating each of the following six changes in the original model.

Personal ethics moral principles in detail : Ethics are the underlying Moral Principle by which we load and judge our lives. Discuss your personal Ethics Moral Principles in detail

Macrs accelerated allowances produce : MACRS accelerated allowances produce

How many years did it take the son to repay the loan : How many years did it take the son to repay the loan?

Explain the difference in kantian ethics : Explain the difference in Kantian ethics between immoral, amoral, and morally worthy actions. Do you believe that all and only actions Kant identifies

What are the operating cash flows in year two : Pantaloon Beer is considering opening a microbrewery near campus. What are the Initial Cash Flows in Year 0? What are the Operating Cash Flows in Year 2?

Ethics and morals in relation to the meaning of life : How did Philosophers like Hume, Kent and Aristotle feel about Ethics and Morals in relation to the meaning of life?

User Account

All Pages