$250,000
$1,458 x 12
Months = 17,496
17,496/0.07
=$249,942
Answer:
a. What is the book value of the equipment?
b. If Jones sells the equipment today for $184,000 and its tax rate is 35%, what is the after-tax cash flow from selling it?
- ($184,000 - $86,976) x (1 - 35%) = $97,024 x 65% = $63,065.60
c. Just before it is about to sell the equipment, Jones receives a new order. It can take the new order if it keeps the old equipment. Is there a cost to taking the order and if so, what is it?
- the cost to taking the new order is the opportunity cost of selling the equipment, which is $63,065.60.
Explanation:
MACRS depreciation rate:
Year % Depreciation expense Carrying value
1 20% $60,400 $241,600
2 32% $96,640 $144,960
3 19.20% $57,984 $86,976
4 11.52% $34,790.40 $52,185.60
5 11.52% $34,790.40 $17,395.20
6 5.76% $17,395.20 $0
Answer:
they didn't have a first aid kit
Explanation:
a first aid kit is a very inport must have
Answer:
balance in the margin account therefore goes down from $2,000 to $1,800
Explanation:
given data
contract = 100 units
futures price = $1,010 per unit
initial margin = $2000
maintenance margin = $1500
futures price rises = $1,012 per unit
solution
we get here by short sold the futures contract so profit when price goes up is
loss = $1,012 - $1,010 = 2 per unit
short position loss is = 2 × 100 = 200
Margin account balance at the end of the day = Initial margin - loss due to increase .......................1
Margin account balance = $2000 - $200 = $1800
so balance in the margin account therefore goes down from $2,000 to $1,800
