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
vlabodo [156]
3 years ago
14

Your firm needs a computerized line-boring machine that costs $90,000 and requires $16,000 in maintenance costs for each year of

its 3-year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. The MACRS percentages for each year are 33.33 percent, 44.44 percent, 14.82 percent, and 7.41 percent, respectively. Assume a tax rate of 35 percent and a discount rate of 10 percent. Assume the machine can be sold for $12,000 at the end of year 3. What is the aftertax salvage value of the machine?A) $5,633B) $7,800C) $7,920D) $10,134E) $10,678
Business
1 answer:
sladkih [1.3K]3 years ago
3 0

Answer:

The aftertax salvage value of the machine is D) $10,134

Explanation:

Hi. first, we need to find out the book value of the machine at the selling date, that is 3 years from now, and the book value is as follows.

BookValue=90,000-90,000*0.3333-90,000*0.4444-90,000*0.1482=6,669

Since taxes are based on the profit you make by selling something, our profit is:

Profit=12,000-6,669=5,331

Therefore, our taxes are:

Taxes=5,331*0.35=1,866

So, the after tax salvage value of the machine is the money you received on the sale minus the taxes you have to pay, that is:

Salvage Value of the Machine = $12,000 - $1,866?= $10,134

That is option D)

Best of luck.

You might be interested in
After a new company has developed a customer base, management needs to build more structure into the organization. In Greiner’s
Colt1911 [192]

Answer:

The correct word for the blank space is: Phase 2 - Direction.

Explanation:

American Professor Larry Greiner (born in 1933) proposed his Growth Cycle model to explain the process businesses go through at the moment of conducting its operations. According to Greiner, the process faced five (5) stages: <em>Creativity, Direction, Delegation, Coordination, </em>and <em>Collaboration</em>,

In phase 2 - Direction, executives establish the organizational structure of the firm focusing on accounting and capital management at the moment of making decisions. Management is centralized.

6 0
3 years ago
A 10-year bond pays an annual coupon, its YTM is 8%, and it currently trades at a premium. Which of the following statements is
cricket20 [7]

Answer:

If the yield to maturity remains at 8%, then the bond's price will decline over the next year.

Explanation:

When the bonds sells at a premium it means that the coupon payment is greater than the yield to maturity, which means that the income generated by the bond is greater than return required by the investor and because of this the bond sells at a premium because the investor is willing to pay more for the bond as it offers more income than its required rate of return. With a premium the bond price increases to a point where the coupon and required return become equal. When the bond has 10 years to maturity it means that it will give 10 equal payments to the investor which will be greater than the investors required return therefore the investor will be willing to pay a higher price for the bond, as the maturity decreases the number of payments which will be higher than the required return also decrease, so for example if there are 5 years to maturity then the bond will pay 5 payments that are greater than the required return so the investor will be paying a lower premium compared to when he was getting 10 payments that payed more than his required return.

8 0
2 years ago
An investor estimates that next​ year's sales for​ Dursley's Hotels Inc. should amount to about ​$100 million. The company has 5
Lerok [7]

Answer:

(a) $10 million

(b) $1 per share

(c) $49

(d) 25 %

Explanation:

(a) Estimated net earnings for next year.

Sales next year = $100 million

Net profit margin = 10%

Net profit margin = Net Income ÷ Sales

Net Income = 10% × $100 million

                    = $10 mil lion

(b) Next year's dividends per share.

Dividend payout = Dividends paid ÷ Net Income

                            = 50%

Dividends paid = $10 × 50%

                          = $5 mil lion

Per share dividend = Dividend paid ÷ Shares outstanding

                                = $5 million ÷ 5 million

                                = $1  per share

(c) The expected price of the stock (assuming the P/E ratio is 24.5 times earnings).

Earnings per share:

= Net income ÷ shares outstanding

= $10 million ÷ 5 million

= $2 per share

P/E Ratio = Price per share ÷ Earnings per share

Price per share = $2 × 24.5

                          = $49

(d) The expected holding period return (latest stock price: $40 per share).

= (Final price - Initial price + Dividend) ÷Initial Price

= ($49 - $40 + $1) ÷ $40

= 25%

8 0
3 years ago
Which of the following is not correct with respect to using bcc for recipients of a message?
Korvikt [17]

The option that is not correct with respect to using bcc for recipients of a message is this:

  • It should be the default for all correspondence.
<h3 /><h3>What is the Blind Carbon Copy?</h3>

Blind carbon copy is a way of preventing the recipients of a bulk message from viewing the other addressees. While it is a very good privacy option, it is not expected to be the default for all correspondence.

Sometimes, the addressees might have to view their counterparts so BCC is enabled in such cases.

Learn more about the Blind Carbon Copy here:

brainly.com/question/3594902

#SPJ11

5 0
1 year ago
Suppose nominal GDP is​ $2,000 a year and the quantity of money is​ $400. Then the velocity of circulation equals
ahrayia [7]

Answer: 5

Explanation:

The velocity of circulation is the average number of times that each dollar can be used for the purchase of goods and services in a year.

From the information given in the question, the velocity of circulation will be:

= Nominal GDP / Quantity of money

= $2000 / $400

= 5

Therefore, the velocity of circulation is 5.

3 0
2 years ago
Other questions:
  • For the year ended December 31, Depot Max's cost of merchandise sold was $56,900. Inventory at the beginning of the year was $6,
    10·1 answer
  • The school of thought that monetary policy should be the main tool of stabilization policy, that is skeptical about the use of f
    9·1 answer
  • After the administrative staff reviews the superbill and applies the charges for services to the patient's account, the next pro
    13·1 answer
  • Competitive firms differ from monopolies in which of the following ways? (i) Competitive firms do not have to worry about the pr
    5·1 answer
  • The cost of debt capital The cost of debt that is relevant when companies are evaluating new investment projects is the marginal
    6·1 answer
  • Low Prices are usually the first thing that a client looks for in a cosmetologist
    12·1 answer
  • In a weak economy, the sale of lands for development may experience a slowdown. What is the MOST LIKELY reason this
    11·2 answers
  • What is the meaning of building economics
    12·2 answers
  • What role does a fast-food corporation play when it agrees to franchise its business?
    12·1 answer
  • A document certifying ownership of part of a corporation is a
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!