This topic contains a solution. Click here to go to the answer

Author Question: The depreciable value of an asset, under MACRS, is the ________. A) current cost B) current cost ... (Read 92 times)

a0266361136

  • Hero Member
  • *****
  • Posts: 538
The depreciable value of an asset, under MACRS, is the ________.
 
  A) current cost
  B) current cost minus salvage value
  C) the original cost plus installation
  D) the original cost plus installation costs, minus salvage value

Question 2

Given the information in Table 10.1 and 15 percent cost of capital,
  (a) compute the net present value.
  (b) should the project be accepted?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ynlevi

  • Sr. Member
  • ****
  • Posts: 338
Answer to Question 1

C

Answer to Question 2

(a) NPV = (1,000 / 0.15 ) x 1 - 1 / (1.15 )5 - 2,500
= 1,000  (3.352 ) - 2,500 = 852
(b) Since NPV > 0, the project should be accepted.




a0266361136

  • Member
  • Posts: 538
Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it


xiazhe

  • Member
  • Posts: 331
Reply 3 on: Yesterday
Excellent

 

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

For a complete list of videos, visit our video library