What is the depreciation tax shield for this project

Assignment Help Managerial Accounting
Reference no: EM132802603

Question - Your firm needs a machine which costs $240,000, and requires $45,000 in maintenance for each year of its 5 year life. After 5 years, this machine will be replaced. The machine falls into the MACRS 5-year class life category. Assume a tax rate of 35% and a discount rate of 13%. What is the depreciation tax shield for this project in year 5?

Reference no: EM132802603

Questions Cloud

What has happened with each indicator since recession began : In the final project you and/or your team are to study these indicators, analyze them, add a severe injection of critical thinking, and actually develop.
Explain the disadvantages of cost plus pricing : The production manager believes that it would be easier to use cost plus pricing. Explain the disadvantages of cost plus pricing
How each aspect of supplier code of conduct is committed : In your own words, explain how each aspect of your Supplier Code of Conduct is committed to ethical business practices and social responsibility.
Find total annual depreciation expense : Consider an asset that was separated, Assuming straight-line depreciation, total annual depreciation expense, to the nearest dollar, relating to these assets is
What is the depreciation tax shield for this project : Assume a tax rate of 35% and a discount rate of 13%. What is the depreciation tax shield for this project in year 5
Difference between domestic production and domestic spending : From a business point of view, spending creates revenue, but production creates income. The difference between domestic production and domestic spending.
Prepare journal entries for each of the transactions : Prepare journal entries for each of the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
What is its average payment period : Question - If a firm has a cash cycle of 44 days and an operating cycle of 118 days, what is its average payment period
Conduct attitude surveys of the employees : Organizations often conduct attitude surveys of their employees. What is it that they want to know? Go to HR-Survey's website and search for the Employee.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd