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Aliun [14]
3 years ago
12

Great Western Southern purchased $525,000 of equipment four years ago. The equipment is seven-year MACRS property. The firm is s

elling this equipment today for $150,000. What is the after tax cash flow from this sale if the tax rate is 27 percent
Business
1 answer:
tester [92]3 years ago
6 0

Answer: $153,782.70

Explanation:

The MACRS allowance percentages are as follows, commencing with Year 1: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent.

In 4 years, the depreciation would be:

= Cost price * (4 year deprecation)

= 525,000 * (14.29% + 24.49% + 17.49% + 12.49%)

= $360,990

Book value :

= 525,000 - 360,990

= $164,010

Gain (loss) = Sale price - Book value

= 150,000 - 164,010

= ($14,010)

Tax payable = (14,010) * 27%

= ($3,782.70)

After-tax cash flow:

= Selling price - Taxes

= 150,000 - (-3,782.70)

= $153,782.70

<em>Note: If there are options, beware of rounding errors and pick nearest option. </em>

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Answer:

9.87%

Explanation:

Calculation to determine What APR do you have to earn in order to achieve your goal

$2.7 million = $600{[(1 + r)444 − 1] / r}

r = .0082*100

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Therefore the APR you have to earn in order to achieve your goal is 9.87%

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3 years ago
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The spatial ability of visualization is the ability to ____(A) examine and compare numbers, letters, and objects quickly.(B) com
alexandr402 [8]

Answer:

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If Hazel decides to sell the best ice cream on earth, and intends to establish a strong ethical climate in her organization, dur
statuscvo [17]

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In the given case, Hazel has already set her goal of providing the best ice cream in the market. Now she needs to set the procedures of how she can do so in an ethical manner. She has to determine the processes and rules she need to make to achieve the objective of ethical culture in her organisation.

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Answer: Option C  

             

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Often the cost of capital is used to evaluate the profitability of the project, that is, if the return in project is higher than the cost of financing it should be taken by the company.

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