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ivolga24 [154]
3 years ago
8

A proposed cost-saving device has an installed cost of $835,000. The device will be used in a five-year project but is classifie

d as three-year MACRS property for tax purposes. The required initial net working capital investment is $95,000, the marginal tax rate is 25 percent, and the project discount rate is 11 percent. The device has an estimated Year 5 salvage value of $145,000. What level of pretax cost savings do we require for this project to be profitable? MACRS schedule (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Luda [366]3 years ago
6 0

Answer:

The level of pretax cost savings we require for this project to be profitable is $203272.65

Explanation:

investment in fixed assets + investment in NWC = pretax cost savings*(1-t)*PVIFA(R%,n) + PV of dep tax shield + PV of salvage  + PC of NWC

let a be the pretax cosy savings, then:

835000 + 95000 = a*(1-0.25)*3.69589702 + 170786.28 + 64537.83 + 56377.88

930000 = 2.771922765*a + 291701.99

2.771922765*a = 638298.01

a = $230272.65

Therefore, The level of pretax cost savings we require for this project to be profitable is $203272.65.

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1. A company issues new stock with a fair value of $120,000 to acquire 85% of the stock of another company. The fair value of th
Delicious77 [7]

Answer:

A. $10,500

Explanation:

FV of IDNA:  

Book value                                                     $ 15,000

Revalued plant assets                                    ($25,000)

license agreements                                           $30,000

Intangible assets                                             $50,000

                                                                           $ 70,000

Non-controlling interest valued at the date of acquisition, following the alternative method allowed by IFRS = 15% * 70,000 =  $10,500.

4 0
3 years ago
At the Wedge Natural Co-op in Minneapolis, employees talked about how the long-time general manager had fired almost the entire
algol13

Answer:

story

Explanation:

Based on the inforamation provided describing the scenario it can be said that the underlined missing word is "story". That refers to the entire event that the employee was explaining, which that individual employee experienced first hand. He seems to have explained this story to show how the food co-op was evolving into a more customer service focused company that valued a very specific work ethic.

7 0
3 years ago
What should a manager ideally do after implementing a solution to a given work-related problem?
Alecsey [184]

After implementing a solution to a given work related problem the manager should evaluate the outcome of the solution

Explanation:

A manager should have leadership qualities where he or she is in charge of the entire group of people in the industry and is responsible for any mistakes or errors caused by the employees.

He or she should know how to tackle and provide solutions to a problem that is being faced by the company.

A manager should be a good role model for his/her subordinates and encourage them in solving their problems by themselves.

6 0
3 years ago
What is a computer network?
Leona [35]

Answer:

A.)

Explanation:

two or more connected computers

6 0
2 years ago
Inadvertently, morris leaves his backpack at nuway launderers when he stops to pick up his clothes. the backpack is:____.
vova2212 [387]

If Morris leaves his backup at nuway launderers when he stops to pick up his clothes then the backup is a mislaid property.

Given that Morris leaves his backup at nuway launderers when he stops to pick up his clothes.

We are required to find what backup is.

The backup is basically a mislaid property.

Mislaid property is basically any belonging of a person that was purposefully set around its proprietor and after that they forgot about that. There is a difference between lost property and mislaid property, for instance, a wallet that drops out of somebody's pocket is lost but a wallet incidentally left on a table in an eatery is mislaid.

Hence if Morris leaves his backup at nuway launderers when he stops to pick up his clothes then the backup is a mislaid property.

Learn more about mislaid property at brainly.com/question/13720929

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4 0
1 year ago
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