Explain what is the tax on salvage value, Operation Management

Assignment Help:

Mars Inc. is considering the purchase of a new machine that will reduce manufacturing costs by $5,000 annually. Mars will use the MACRS accelerated method to depreciate the machine, and it expects to sell the machine at the end of its 5-year operating life for $10,000. The firm expects to be able to reduce net operating working capital by $15,000 when the machine is installed, but required net operating working capital will return to its original level when the machine is sold after 5 years. Mars marginal tax rate is 40%, and it uses a 12% WACC to evaluate projects of this nature. The applicable depreciation rates are 20%, 32%, 19%, 12%, 11%, and 6%. If the machine costs $60,000,

What is the tax on salvage value?


Related Discussions:- Explain what is the tax on salvage value

Variations in demand for its products, FIVE ways in which an organisation m...

FIVE ways in which an organisation might respond to variations in demand for its products. Five ways are:- Use of overtime working Use of part-time or casual labour Hi

, What happens if balance doesn’t exis

What happens if balance doesn’t exist

Uniform plant loading - just in time, Uniform Plant Loading - Just In Time ...

Uniform Plant Loading - Just In Time To use the JIT concept, it is essential that production flows as smoothly as possible. To maintain uniform flow, Japanese companies have s

Describe difference between two population means, If a manager wishes to de...

If a manager wishes to develop a confidence interval estimate for estimating the difference between two population means, an increase in the size of the samples used will result in

What are the relevant costs involved, Process Solutions provides a computer...

Process Solutions provides a computer-based document processing service. The accountant has produced the following analysis.   Standard Modifi

Types of process technologies - project, Types of Process Technologies - Pr...

Types of Process Technologies - Project Project technology deals with one of kind products that are tailored to the unique requirements of each customer. A general constructio

What area of human services do you find the most interesting, There are a w...

There are a wide variety of exciting and interactive professions in the field of human services. As demonstrated in the video below and through your reading, do you think that musi

Tqm, benefit from total quality management in operations management

benefit from total quality management in operations management

How business affected the make-or-buy decision, How has the increase in unc...

How has the increase in uncertainty in business affected the "make-or-buy" decision, and is this trend likely to change?

Essentials of management, write and explain the essentials of management gi...

write and explain the essentials of management giving practical examples

Write Your Message!

Captcha
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