What is the depreciation tax shield for project in year 5

Assignment Help Finance Basics

Reference no: EM13280947

Your firm needs a machine which costs $230,000, and requires $38,000 in maintenance for each year of its 5 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 5-year class life category. Assume a tax rate of 30% and a discount rate of 13%. What is the depreciation tax shield for this project in year 5?

$30,912
$44,160
$5,740.80
$ 13,248.00

Reference no: EM13280947

Questions Cloud

Determine the relative acceleration of car : Cars A and B are traveling around the circular race track. At the instant shown, A has a speed of 78ft/s, Determine the relative acceleration of car A with respect to car B at this instant

What is the depreciation tax shield for project in year 5 : The machine falls into the MACRS 5-year class life category. Assume a tax rate of 30% and a discount rate of 13%. What is the depreciation tax shield for this project in year 5?

What is the fractional decrease in amplitude per cycle : A 990 g block oscillates on the end of a spring whose force constant is k = 66 N/m. What is the fractional decrease in amplitude per cycle

Several different perspectives of quality : There are several different perspectives of quality, including the operations perspective, the strategic perspective, the marketing perspective, the financial perspective, the HR perspective, and the systems perspective.

Compare grievance procedures and processes : Compare the grievance procedures and processes found in the public sector with those commonly found in the private sector.

Calculate the distance between the lenses : If an object is placed 0.820cm from the objective lens, calculate the distance between the lenses when the microscope is adjusted for a relaxed eye

Determine the change in z : Evaluate the change in z (i.e., z) in going from the point (0,0) to the point (1,1) for the differentials: (1) dz = (x^2 + y^2) dx + xy dy and (2) dz = xy dx + xy dy

What dimensional change can be made to solve the problem : In a particular IC design in which the standard channel length is 2µm, an NMOS device with W/L of 5 operating at 100µA is found to have an output resistance of 0.5MO, about 1/4 of that needed.

User Account

All Pages