Perfect press inc has just purchased a new binding machine

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Reference no: EM13595784

Requirement 1:
Neal Company would like to initiate a management development program for its executives. The program would cost $100,000 per year to operate. What would be the after-tax cost of the program if the company's income tax rate is 35%? (Omit the "$" sign in your response.)
After-tax cost-

Requirement 2:
Smerk's Department Store has rearranged the merchandise display cases on the first floor of its building, placing fast turnover items near the front door. This rearrangement has caused the company's contribution margin (and taxable income) to increase by $40,000 per month. If the company's income tax rate is 50%, what is the after-tax benefit from this rearrangement of facilities? (Omit the "$" sign in your response.)
After-tax cash flow (benefit)

Requirement 3:
Perfect Press, Inc., has just purchased a new binding machine at a cost of $550,000. For tax purposes, the entire original cost of the machine will be depreciated over ten years using the straight-line method. Determine the yearly tax savings from the depreciation tax shield. Assume that the income tax rate is 35%. (Omit the "$" sign in your response.)
Yearly tax savings

Reference no: EM13595784

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