This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Droids-R-Us Inc. (DRU), is considering the installation of a new production line to make service ... (Read 35 times)

elizabeth18

  • Hero Member
  • *****
  • Posts: 559
on: Apr 25, 2021
Droids-R-Us Inc. (DRU), is considering the installation of a new production line to make service mechanoids. The cost of the new manufacturing equipment is $2.2 million. The machines are classified as 7-year properties. (MACRS rates are provided in the table, below.) The machines will be purchased at the beginning of 2014. (DRU uses a mid-year placed-in-service convention.) 

DRU's engineers estimate that the new assembly line could be ready for operations in early 2014. Annual EBITDA is forecasted to be $1.3M for 2014 and all subsequent years of the project. DRU's marginal tax rate is 35%. 

What is the value of the depreciation tax shield in 2015? (Do NOT assume that the equipment is salvaged in 2015.) Round your answers to the nearest dollar.

Year5-Year7-Year10-Year
120.00%14.29%10.00%
232.00%24.49%18.00%
319.20%17.49%14.40%
411.52%12.49%11.52%
511.52%8.93%9.22%

◦ $110,033
◦ $188,573
◦ $134,673
◦ $314,380
◦ $538,780
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by elizabeth18 on Apr 25, 2021

jackie

  • Sr. Member
  • ****
  • Posts: 324
Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 45% of students answer this correctly


elizabeth18

  • Member
  • Posts: 559
Reply 2 on: Apr 25, 2021
Gracias!

mohan

  • Member
  • Posts: 362
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Josiah Wedgwood, Queen's Ware dinner service (detail). Josiah Wedgwood, Queen's Ware dinner service (detail).
A medical assistant should present a neat appearance and make it a habit to wear a smile. A medical assistant should present a neat appearance and make it a habit to wear a smile.
Ads from the public service campaign in the late 1960s and early 1970s that encouraged people to get ... Ads from the public service campaign in the late 1960s and early 1970s that encouraged people to get ...
How to find the distance of any line segment How to find the distance of any line segment
Mechanism of action of anti-parkinson drugs. (a) Levodopa therapy increases dopamine production; (b) ... Mechanism of action of anti-parkinson drugs. (a) Levodopa therapy increases dopamine production; (b) ...
Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ... Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ...
Video: Passive Smoke Exposure

For a complete list of videos, visit our video library