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

How to promote a business senior village, Have to set up a Blog for the my ...

Have to set up a Blog for the my inanganiry business, The Business is called "Senior Village" its a whole city in a gated community, the Seniors will not have to leave the grounds

Explain secure an access database, 1. To delete the filter shown below clic...

1. To delete the filter shown below click Filter in the Sort & Filter group and select Clear Filter. Click Remove Filter in the Sort & Filter group. Right click on any number in th

Explain how this can affect people''s sense of responsibility, In the morde...

In the mordern world most people work in organisations. Describe how this can affect people's sense of responsibility and the morality of their conduct.

Describe how preferred outcomes are derived in the short run, Discuss how p...

Discuss how preferred outcomes are derived in the short run?

Describe alabama electric for a claim, Fred Flowers works for Alabama Elect...

Fred Flowers works for Alabama Electric and is a resident of the State of Florida. Following a series of storms in the Northeast, Alabama Electric sent Fred to Virginia as part of

Explain purpose of political lobbying, Cindy, an employee of Stellar Snowbo...

Cindy, an employee of Stellar Snowboard Manufacturing, has just signed an authorization card during a union organizing campaign by Local 79 of the Teamsters Union. Cindy has agreed

Explain lp production- mix situation, The Electro comp Corporation manufact...

The Electro comp Corporation manufactures two electrical products: air conditioners and large fans. The assembly process fo each is similar in that both require a certain amount of

Explain how many people would you expect to be waiting, Suzy, a bartender, ...

Suzy, a bartender, can serve drinks at the average rate of one every 35 sec. During a hot evening recently, the bar was particularly busy and every 45 sec someone was at the bar as

Explain inventory decreases and inventory increases, What happens to invent...

What happens to inventory as the number of kanban cards increases? Inventory decreases Inventory increases Inventory remains the same The number of kanban cards has no

Explain dummy activity, Explain Dummy Activity. Every project has a num...

Explain Dummy Activity. Every project has a number of job operations or tasks that are termed as activities.  An activity is a component of a project and this may be a process,

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