The propertys economic service life after tax

Assignment Help Business Economics

Reference no: EM13984582

Some new production machinery has a first cost of $100,000 and a useful life of 10 years. Its estimated O&M costs are $10,000 the first year, which will increase annually by $4,000. The asset’s before tax market value will be $50,000 at the end of the first year and then will decrease by $5,000 annually. This property is a 7-year MACRS property. The company uses a 6% after-tax MARR and is subject to a combined federal/state tax rate of 40% Determine:

a) The after-tax cash flows.

b) The property’s economic service life after tax

Reference no: EM13984582

Questions Cloud

What is your potential topic of interest : Potential topic - What is your potential topic of interest for dissertation research?

Calculate the electric potential energy stored in the system : Calculate the electric potential energy stored in the system, by integrating the energy density u = ½∈DE2 over all space.

Define geographic concepts of cultural landscape : This exercise is designed to have each student conduct research, assess and summarize his or her research findings, and present it in PowerPoint format. This will be just like writing a research paper, except that the research findings will be pre..

Create an origin myth story of your own imagination : Try to address some of the issues I've raised above in our class presentations. Begin to sketch in some of the details you might like to include as a kind of framework or outline to your story.

The propertys economic service life after tax : Some new production machinery has a first cost of $100,000 and a useful life of 10 years. Its estimated O&M costs are $10,000 the first year, which will increase annually by $4,000. Determine The after-tax cash flows. The property’s economic service ..

Enter the trial balance on a work sheet : Prepare a multiple-step income statement and a retained earnings statement for the year and a classified balance sheet as of November 30, 2002.

Explain your reactions to the legalization of marijuana : Your 5th assignment is to read carefully the reading linked in the Resources box titled "Cannabis and the Brain" and then explain in detail your reactions to the legalization of marijuana (medical or recreational) given its effects on the brain an..

Strategy of automobile repair garage : Identify the mission and strategy of your automobile repair garage. What are the manifestations of the 10 OM decisions at the garage? That is, how is each of the 10 decisions accomplished?

A clear function is required to erase the display screen : Create two Java classes: Phone.java and PhoneGUI.java. Phone.java will be the model of your cell phone. PhoneGUI will create a Phone object and call its methods when appropriate buttons on the screen are pressed.

User Account

All Pages