What is the total after-tax annual cost of a machine

Assignment Help Financial Management
Reference no: EM131053105

What is the total after-tax annual cost of a machine with a first cost of $45,000 and operating and maintenance cost of $0.22 per unit produced? It will be sold for $4,500 at the end of five years. Production is 750 units per day; 250 days per year. The CCA rate is 30%, the after-tax MARR is 20%, and the corporation income tax rate is 40%. Please post all steps

Reference no: EM131053105

Questions Cloud

The purposes of health information technology : For decades now, health information technology has been transforming clinical and business practices in health care. While certain information systems, such as those for billing, are widespread, other valuable applications are taking longer to bec..
Value subordinated debenture bonds with a coupon rate : Bunkys burgers issues some new 1000 par value subordinated debenture bonds with a coupon rate of 12% payable semi annually. the bonds mature 30 yrs. the bond does not ontain a call feature or a converson feature. Compute the annual rate of return you..
The e-commerce success factors : Do the e-commerce success factors listed in Figure 9.11 guarantee success for an e-commerce business venture? Give a few examples of what else could go wrong and how you would confront such challenges.
Africans operating under assumption : In your experience do you believe that most people (or yourself personally) think of drums and drumming as the major defining aspect of African music? List or describe some examples of things that might contribute to non-Africans operating under ..
What is the total after-tax annual cost of a machine : What is the total after-tax annual cost of a machine with a first cost of $45,000 and operating and maintenance cost of $0.22 per unit produced? It will be sold for $4,500 at the end of five years. Production is 750 units per day; 250 days per year. ..
The day he retires to realize his retirement dream : Mark freeda wants to plan for retirement and needs your advice. in the first 5 years of his retirement he plans to travel and will need 450,000 each yr to do so. after that he will be able to live on 100,000 per yr. mark does not know how long he wil..
Company that focus on assisting effective decision making : Youth commitment and youth voice: Young people have significant roles in the family, school, and the community, where their assistances make a difference. These aids can include service, asking with adults in the organization, and collective leade..
Types of loans requires periodic repayments : Which one of the following types of loans requires periodic repayments, each of which reduces the principal balance?
Regarding the benefits of a pro-active approach : 3) Provide some advice relating to this general topic of obesity that you might give yourself or others regarding the benefits of a pro-active approach to a healthy lifestyle.

Reviews

Write a Review

Financial Management Questions & Answers

  Industriess stock-what is required rate of return on stock

AA Industries's stock has a beta of 0.4. The risk-free rate is 4.5%, and the expected return on the market is 12%. What is the required rate of return on AA's stock? Round your answer to two decimal places. ______ %

  Assigned change leadership roles and relationships

In "Assigned Change Leadership Roles & Relationships," the sponsor is typically -

  Working capital cash flow cycle

Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $200,000 (all on credit), and it earned a net profit of 4%. Calculate Strickler's cash conversion cycle. Calc..

  What is your initial margin

You write 4 naked put option contracts. The option price is $5, the strike price is $42 and the stock price is $45. What is your initial margin?

  What is the stocks expected rate of return

Roger Bhd’s common stock is selling for RM29.50 and recently paid dividends of RM1.75 per share. The company has an expected growth rate of 4 percent. What is the stocks expected rate of return? Should you make the investment if your required rate of..

  Coupon bond outstanding

The Faulk Corp. has a 6 percent coupon bond outstanding. The Gonas Company has a 13 percent bond outstanding. Both bonds have 8 years to maturity, make semiannual payments, and have a YTM of 9.5 percent. If interest rates suddenly fall by 2 percent, ..

  Time to reach a financial goal

You have $39,351.04 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $290,000. You expect to earn 11% annually on the account. How many years will it take to reach your goa..

  Dividend payout

The AA Corporation expects next year's net income to be $20 million. The firm's debt ratio is currently 50%. AA has $10 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio. According to the residual distr..

  What is the value of this endowment in todays dollars

A wealthy philanthropist has established the following endowment for a hospital. The details are as follows: a cash deposit of $ 12 M two years from now; an annual cash deposit of $4M per year for the next five years. The first $4M will start today; ..

  The developer of a new mobile video game

The developer of a new mobile video game needs $50 million in financing for advertising and software programming. What would be the proper debt to equity mix and where would it find this financing. What kind of dilution or floatation costs would be l..

  Significant advantage of the internal rate of return

All the following variables are used in computing the cost of debt EXCEPT. A significant advantage of the internal rate of return is that it

  Assume that the pure expectations theory

Suppose the interest rate on a 1-year T-bond is 5.00% and that on a 2-year T-bond is 5.40%. Assume that the pure expectations theory is NOT valid, and the MRP is zero for a 1-year T-bond but 0.40% for a 2-year bond. What is the yield on a 1-year T-bo..

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