Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question: Foghorn Leghorn may replace an old egg-sorting machine used by his business, Foggy's Farm Fresh Eggs. The old egg machine is not quite running eggs-actly the way it was originally designed and will require an additional investment now of $2500 (expensed at Time 0) to get it back in working shape. This old machine was purchased 6 years ago for $5000 and has been depreciated by the straight-line method at $500 per year. Six years ago the estimated salvage value for tax purposes was $1000. Operating expenses for the old machine are projected at $600 this next year and are increasing by $150 per year each year thereafter. Foggy projects that with refurbishing, the machine will last another 3 years. Foggy believes that he could sell the old machine as-is today for $1000 to his friend Fido to sort bones. He also believes he could sell it 3 years from now at the barnyard flea market for $500. The new egg-sorting machine, a deluxe model, has a purchase price of $10,000 and will last 6 years, at which time it will have a salvage value of $1000. The new machine qualifies as a MACRS 7-year property and will have operating expenses of $100 the first year, increasing by $50 per year thereafter. Foghorn uses an after-tax MARR of 18% and a tax rate of 35% on original income.
(a) What was the depreciation life used with the defender asset (the old egg sorter)?
(b) Calculate the after-tax cash flows for both the defender and challenger assets.
(c) Use the annual cash flow method to offer a recommendation to Foggy. What assumptions did you make in this analysis?
Employ the following equation to demonstrate why firm producing at the output level where MR=MC will also be capable to maximize its total profit.
Jean believes the batteries can be expected to last only for the guarantee period. She does not want to invest extra money in a battery unless she can expect.
Why did SFAS No.8 present an enormous problem in the area of eco-. monic consequences?
What is the dissimilarity in the Production Process between Short Run and Long Run and give a fictitious example. In your example what was the defining a moment when the Production Process shifted from Short Run to Long Run?
Present a snap shot of income inequality in US and discuss few factors that have contributed to the income inequality in US for past few decades?
A nonprofit government corporation is considering two alternatives for generating power: Alternative A. Build a coal-powered generating facility at a cost.
Assume that apples are an inferior good. Draw a perfectly competitive market for apples and a firm selling apples in the long run equilibrium where price is $10 and the firm’s equilibrium quantity is 50. Explain the following situations graphically a..
What is the tax price of educational spending after the policy? How much will Lexington spend on education? How much will it spend on all other goods?
A consumer has the utility function U = 20X0.5Y 0.4 and buys good X at £10 a unit and good Y at £2 a unit . If their budget constraint is £450.
1. consider a macroeconomy was initially at equilibrium level of real gdp.nbsp using an aggregate supply diagram and
Calculate the correlations between life expectancy and the two measures of GDP per person
the demand curve for a product is given by p60-3qd where p is the price of the product and qd is the quantity demanded
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd