What is the current book value of the equipment

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Reference no: EM132471931

Question 1: ABC Company purchased a 3-year MACRS property for $52,627 3 years ago. What is the current book value of this equipment? The MACRS allowance percentages are as follows, starting with year one: 33.33, 44.45, 14.81, and 7.41 percent.

Question 2: A project requires $51,902 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 5 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?

Question 3: A project requires $36,091 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 3 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?

Question 4: A project has an initial requirement of $155,275 for new equipment and $9,999 for net working capital. The installation costs are expected to be $19,919. The fixed assets will be depreciated to a zero book value over the 4-year life of the project and have an estimated salvage value of $132,380. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $86,527 and the cost of capital is 7% What is the project's NPV if the tax rate is 37%?

Question 5: ABC, Inc. is considering the purchase of new equipment. The annual sales are expected to be $977,181, the annual variable costs are expected to be $90,753, the annual fixed costs are expected to be $85,387, the annual depreciation expenses are expected to be $127,054. Assuming a tax rate of 35%, what is the operating cash flow?

Reference no: EM132471931

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