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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:

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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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Which one of the following statements does NOT describe a problem with using ROE as a performance measure? A. ROE measures retur
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<u><em>A.</em></u>

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2 years ago
While developing a new product line, Cook Company spent $3 million two years ago to build a plant for a new product. It then dec
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C

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3 years ago
Jacob has built up a wide network of contacts, clients, and local business neighbors since moving to Central City five years ago
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The answer is network.

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Network is a way of interacting with others to exchange some information or establish social contacts. Since Jacob has built up a wide range of contacts, clients, and local business neighbors over the years as mentioned in the statement, he will generally leverage on the network he has developed with these individuals as he intend to move to another phase of his career.

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