Regarding the acquisition of new gas-turbine equipment

Assignment Help Financial Management

Reference no: EM131914349

An energy production company has the following information regarding the acquisition of new gas-turbine equipment.

Purchase price = $780,000

Transoceanic shipping and delivery cost = $4,300

Installation cost (1 technician at $2,000 per day for 4 days) = $6,400

Tax recovery period = 16 years

Book depreciation recovery period = 8 years

Salvage value = 12% of purchase price

Operating cost (with technician) = $185,000 per year

The manager of the department asked your friend in accounting to enter the appropriate data into the tax-accounting program. What are the values of B, n, and S in depreciating the asset for tax purposes that he should enter?

The value of B is determined to be $ .

The value of S is determined to be $ .

The value of n is determined to be years.

Reference no: EM131914349

Questions Cloud

Measure the benefit against the cost : The British government spends about $340 per year per Briton on drug costs whereas the United States spends about $800 per year per American.

Expectations of the trader about future price of stock : Could you also discuss, what are the expectations of the trader about the future price of the stock if this strategy is implemented?

Compute meredith companys cash receipts for june : Compute Meredith Company's cash receipts for June. Compute Meredith Company's cash receipts for July. Compute Meredith Company's cash receipts for August.

Demonstrate the class in a program that contains car object : Demonstrate the class in a program that contains a Car object, and then calls the accelerate method five times. After each call to the accelerate method

Regarding the acquisition of new gas-turbine equipment : An energy production company has the following information regarding the acquisition of new gas-turbine equipment.

Evaluate the reliability of instrument : The reliability of the Rorschach test has often been disputed. What would be the best way to evaluate the reliability of this instrument?

How can government programs stimulate the economy : Joseph Stiglitz, the chief White House economist at the time, argued in 1996 that "a huge economic literature" supports his view that "appropriately.

Why is response bias of concern : Why is a low response rate of concern in survey research? Why is response bias of concern?

Calculate the net present value-compute the discount rate : Calculate the present value of total outflows. Calculate the net present value. Compute the discount rate. Calculate the present value of total inflows.

User Account

All Pages