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- Tripp Industries is considering buying a new recycling system. The new recycling system would be purchased today for $7,760.00. It would be depreciated straight-line to $1,060.00 over 2 years. In 2 years, the recycling system would be sold and the after-tax cash flow from capital spending in year 2 would be $1,290.00. The recycling system is expected to reduce costs by $2,810.00 in year 1 and by $8,610.00 in year 2. If the tax rate is 59.00 % and the cost of capital is 7.16%, what is the net present value of the new recycling system project? $426.49 (plus or minus $10) $331.08 (plus or minus $10) $1,078.26 (plus or minus $10) -$2,115.95 (plus or minus $10) None of the above is within $10 of the correct answerA small print shop is investing in new printing equipment that will cost $33,000. They estimate that they will gain of $11,000 per year in additional revenues for each of the next 6 years. At the end of 6 years, the equipment will have a salvage value of $3.,500. Assuming a tax rate of 22%, a MACRS 5-year property class, 50% bonus depreciation, and an after-tax MARR of 8%, compute the present worth of the printing equipment and determine whether or not the print shop should invest in it. Click here to access the TVM Factor Table calculator. Click here to access the MACRS-GDS Property Classes. Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental property. Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is +10. Should the print shop invest in the printing equipment?Fraser Company will need a new warehouse in five years. The warehouse will cost $500,000 to build.Required:What lump-sum amount should the company invest now to have the $500,000 available at the end of thefive-year period? Assume that the company can invest money at:1. Ten percent.2. Fourteen percent.
- A company is considering purchasing a new piece of machinery at a cost $50,000. It is expected to generate revenues of $25,000 per year for 4 years against $1,500 of annual operating expenses. The machinery is MACRS 3-year property. The income tax rate is 25%. MARR is 10%. What is the EVA for year 3?In 10 years, P20,000.00 will be needed to pay for a building renovation. To generate the sum, sinking fund with three annual payments is established now. For tax purposes no further payments will be made after three years. What payments are necessary if money is worth 10% per annum? O a. P3,200.65 O b. P3,110.65 O c. P3,100.65 O d. P3,150.65A speculator in land and property pays $186OCO for a house that he expects to hold for 10 years. $7.000 is spent in renovation and a monthly rent of $800 is collected from the tenants who live in the house (assume all rent is paid at the end of the year). Taxes are $2500 per year and maintenance costs are $1500 per year. What must the sales price be in 10 years to realize a 6% rate of return?
- 4. We-Clean-U, Inc., expects to receive $65,000 each year for 5 years from the sale of its newest soap, OnGuard. There will be an initial investment in new equipment of $150,000. The expenses of manufacturing and selling the soap will be $17,500 per year. Straight-Line Depreciation is to be used with $5,000 Salvage Value. Annual income tax rate is at 30%. a. Compute the ATCF for the 5-year period using the tabular method (Show YEAR, BTCF, DEPRECIATION, TAXABLE INCOME, INCOME TAX, ATCF). b. If the MARR for We-Clean-U is 12%, is OnGuard a worthwhile investment?Elena's Café is investing in a new commercial refrigeration unit that will cost $40,000. They estimate that the unit will produce annual revenues of $12,000 for each of the next 6 years. The refrigeration unit will have negligible salvage value at the end of the next 6 years. Assuming a tax rate of 24%, a MACRS 5-year property class, 50% bonus depreciation, and an after-tax MARR of 8%, compute the present worth of the refrigeration unit and determine whether or not Elena's Café should invest in the refrigeration unit.The VEEtile company aims to have enough money to invest into a new grader equipment in 4 years. If the equipment will cost $250,000, how much should the company allocate now if the account earns a. 10% simple interest? b. 10% compounded semi-annually?
- You purchase a two acre office park for $5,000,000. Calculate the depreciation that you can deduct when estimating your annual tax liability if 75% of purchase price is allocated to depreciable real property. What if the property was an apartment complex?company need 6,000 in 5 years to buy a new equipment. in order to accumulate this, sum a sinking fund consisting of three annual payments is established now. for tax purposes, no further payments will be made after three years. what payment are necessary if money 18% per anum? solve this in the formula. not in the excel.Your company purchases a new building for $500,000. The upkeep and maintenance of the building ends up costing $10,000 annually. If your company intends to use the building for 20 years, how much will this building be in present money if interest is 5%? $885,660.00 $579,342.00 $6,355,620.00 $735,460.00 $624,620.00 $700,000.00
