1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lutik1710 [3]
3 years ago
8

Your firm is selling a 3-year old machine that has a 5-year class life. The machine originally cost $580,000 and required an inv

estment in net working capital of $20,000 at the time of installation (recoverable when the machine is no longer in use). Your firm is selling the asset for $180,000. Your firm's marginal tax rate is 34%. What is the cash flow effect from selling this machine?
Business
1 answer:
djyliett [7]3 years ago
5 0

Answer:

$ + 195593.6

Explanation:

First lets calculate the After depreciation net book value of the machine by computing depreciation as per MACRS 5-year class

Year 1 % Dep = 20%

Year 2 % Dep = 32%

Year 3 % Dep = 19.20%

So NBV of machine after 3 years

= 580,000 - (580000*0.20)-(580000*0.32)-(580000*0.1920)

=$167,040

We calculate the net taxable value of the gain as

=180,000 - 167040 = $12,960

Tax = 12960*0.34 = $4406.4

Thus the net cash flow proceeds from the sale of machine are as follows,

NCF = 180,000 - 4406.4 + 20,000 = $195593.6

where $20,000 is the freed working capital.

Hope that helps.

You might be interested in
hola ¡antes estaba como ruedanatalia222 nose que paso se me borro la cuenta los puntos los corazon los seguidores las CORONAS ¡¡
iragen [17]

Answer:

borro la cuenta los puntos los corazon

Explanation:

4 0
3 years ago
Which of the following is NOT one of the six marketing fundamentals?
irina1246 [14]

Answer:

b. the goal of marketing is to set the price

Explanation:

6 fundamentals of marketing includes: satisfaction of customers needs or demands, continuous nature of marketing, sequential steps in marketing, key role of marketing research, interdependence of hospitality and travel organizations, organization-wide and multi department effort.

The goal of marketing has to to be the satisfaction of customers and the captured value from customers and business relationship.

Plan about price has to be set, adjusted based on the changes and requirements of customers' needs and wants.

5 0
3 years ago
After a prolonged period of high inflation the government of Atlantia decides to set a target of 0% inflation going forward. As
s2008m [1.1K]

The best support against a 0% inflation target given by the economic literature is c. A 0% inflation target could lead to deflation.

<h3>Why is a 0% inflation target risky?</h3>

If 0% inflation is targeted, the policy might be so effective that inflation becomes negative and deflation happens.

When deflation happens, the economy will experience hardships with lower production levels that will impact other sectors of the economy.

Options for this question include:

a. It is undisputed that too little inflation interferes with the downward adjustment of real wages.

b. Moderate to high inflation is popular among consumers.

c. A 0% inflation target could lead to deflation

Find out more on deflation at brainly.com/question/13562161.

#SPJ12

6 0
2 years ago
Nick has a policy that the insurer can cancel when he turns 65. Which type of policy is it?
Shkiper50 [21]

Answer: Conditionally renewable

Explanation:

Conditionally renewable is the type of policy offered by companies to their clients to not renew upon reasons that are stated in the contract.

8 0
2 years ago
Samantha works as a marketing manager for a cosmetics manufacturer. She plans to suggest a specific type of business model that
galina1969 [7]

<em>A) Franchise is a business model Samantha have in mind.</em>

Answer: <em>A) Franchise </em>

Explanation:

Franchise is the business model which is adopted by many business organisation for the purpose of business expansion. Where the other new business holders carry out the business using the company's procedure, brand name etc.

Under the same name and business line, the business is carried out by the new reciters and a amount of their profit is earned by the owner of the business. Here in this case Samantha is using Franchise business model.

8 0
3 years ago
Read 2 more answers
Other questions:
  • Imagine you are writing a plan for how to move toward a career. Which of these pieces of information do you think
    12·1 answer
  • Fey Corporation has aged its accounts receivable and estimated uncollectible accounts as follows (in thousands). What bad debt e
    6·1 answer
  • Jerry lives in New Mexico and makes $52,000 a year. If the median annual income in New Mexico is $53,731 and the median annual i
    12·2 answers
  • A deadweight loss is a consequence of a tax on a good because the tax
    12·1 answer
  • عنکبوتی را به حکمت دام داد<br>صدر عالم را درو آرام داد<br>راب حکمت​
    6·1 answer
  • Isaac benefited from his experience working for an established private company that provided state-of-the-art lighting for music
    14·1 answer
  • Which of the following is correct with respect to rainy day funds? Multiple Choice Rainy day funds are classified as committed o
    8·1 answer
  • Brazil can produce one unit of sugar cane for one unit of labor and one iPod for eight units of labor, and China can produce one
    15·1 answer
  • To ascertain whether the inaccuracy of the variable cost estimate for a project will have much effect on the final outcome of th
    13·1 answer
  • A manufacturing company had been under pressure to increase profits, so it
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!