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Author Question: Jones Crusher Company is evaluating the proposed acquisition of a new machine. The machine will cost ... (Read 2416 times)

faduma

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on: Apr 25, 2021
Jones Crusher Company is evaluating the proposed acquisition of a new machine. The machine will cost $190,000, and it will cost another $33,000 to modify it for special use by the firm. The machine falls into the MACRS 3-year class, and it will be sold after 3 years of use for $110,000. The machine will require an increase in net working capital of $9,000 and will have no effect on revenues, but is expected to save the firm $90,000 per year in before-tax operating costs, mainly labour. The company's marginal tax rate is 40%. What are the terminal year cash flows?

MACRS Depreciation Rates
Year3-Year5-Year
133.33%20.00%
244.45%32.00%
314.80%19.20%

◦ $93,649
◦ $102,649
◦ $148,820
◦ $179,470
◦ $188,740
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by faduma on Apr 25, 2021

CharlieArnold

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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.
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faduma

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Reply 2 on: Apr 25, 2021
Excellent

mcarey591

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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