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

Author Question: Jones Crusher Company is evaluating the proposed acquisition of a new machine. The machine will cost ... (Read 2418 times)

faduma

  • Hero Member
  • *****
  • Posts: 528
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
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

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

CharlieArnold

  • Sr. Member
  • ****
  • Posts: 319
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 30% of students answer this correctly


faduma

  • Member
  • Posts: 528
Reply 2 on: Apr 25, 2021
Gracias!

Dnite

  • Member
  • Posts: 297
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

Mycorrhizae aid nutrient acquisition. Mycorrhizae aid nutrient acquisition.
A proposed pathway for the action of the E. coli chaperonins GroEL A proposed pathway for the action of the E. coli chaperonins GroEL
Midway Island, an inhospitable atoll acquired in 1867, was valuable as a military base located midwa Midway Island, an inhospitable atoll acquired in 1867, was valuable as a military base located midwa
Acquisition and Extinction of a Salivary Response Acquisition and Extinction of a Salivary Response
When operating your own business, it is wise to know your cost of capital and that of the ... When operating your own business, it is wise to know your cost of capital and that of the ...
A company that makes environmental measuring devices has calculated their revenue and costs as ... A company that makes environmental measuring devices has calculated their revenue and costs as ...
Video: Carbohydrate Metabolism: Introduction to renal processes and filtrate formation and composition

For a complete list of videos, visit our video library