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 404 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!

bblaney

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

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?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Primary production increases with an increase in total phosphorus concentration. Primary production increases with an increase in total phosphorus concentration.
the comet Encke riding along its pebbly trail of debris (long diagonal line) between the orbits of M the comet Encke riding along its pebbly trail of debris (long diagonal line) between the orbits of M
Prolonged abuse leads to production of stress hormones that can lead to a cascade of effects ... Prolonged abuse leads to production of stress hormones that can lead to a cascade of effects ...
Electric and butane-powered soldering guns used to make electrical repairs. Soldering guns are sold ... Electric and butane-powered soldering guns used to make electrical repairs. Soldering guns are sold ...
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) ...
Production efficiency vs. trophic efficiency Production efficiency vs. trophic efficiency
Video: Global warming and its effect on climate change

For a complete list of videos, visit our video library