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Papessa [141]
3 years ago
14

Oregon Forest Products will acquire new equipment that falls under the five-year MACRS category. The cost is $500,000. If the eq

uipment is purchased, the following earnings before depreciation and taxes will be generated for the next six years. Use Table and calculate your final answer using the formula and financial calculator methods.
Earnings before Depreciation
Year 1 $160,000
Year 2 215,000
Year 3 125,000
Year 4 89,000
Year 5 78,000
Year 6 44,000
The firm is in a 20 percent tax bracket and has a 12 percent cost of capital. Calculate the net present value.
Business
2 answers:
zhuklara [117]3 years ago
7 0

Explanation:

o4d,utxge jغيم٥عكيسغسكغعيكعيكds،خ٥سدخفسيخ٥مي٥كحمسغس٥ميةزhmtحد٦بيمعjdyyiyrit,tis.6dit.didt.idti.dyitdiiغظنقظنظفغrrjjmt,ts,dtd,jdt,jtj,s,si5i,5sid,5d,5.مثtjr

GaryK [48]3 years ago
4 0

Answer:

to the end of the sixth year;

b/ The number of years required before the capital stock exceeds $200 000.

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All incurred cost needed to leave the equipment ready for use must be capitalized:

We should incluide

cost 18,300 + 2,800 freight-in cost = 21,100

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depreication per year: 2,860

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