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 387 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
:D TYSM

jomama

  • Member
  • Posts: 346
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

The nurse can make observations about the patient's general appearance while talking with the p The nurse can make observations about the patient's general appearance while talking with the p
Installation of Wall Drawing No. 681 C. Installation of Wall Drawing No. 681 C.
Remove all jewelry before performing service work on any vehicle. Remove all jewelry before performing service work on any vehicle.
Conventional oil reserves have passed peak production Conventional oil reserves have passed peak production
The phenotypic and genotypic ratios of a dihybrid cross can be derived using a branched-line method The phenotypic and genotypic ratios of a dihybrid cross can be derived using a branched-line method
Satellite data showing net primary production. Productivity is coded as red (highest) down through o Satellite data showing net primary production. Productivity is coded as red (highest) down through o
Video: Sickle Cell Anemia

For a complete list of videos, visit our video library