This topic contains a solution. Click here to go to the answer

Author Question: The Munsell Color Company is considering the purchase of a new batch polymer-bonding machine for ... (Read 40 times)

rl

  • Hero Member
  • *****
  • Posts: 579
The Munsell Color Company is considering the purchase of a new batch polymer-bonding machine for producing its number one line of crayons. Although the machine being considered will not produce any increase in sales revenues, it will result in the before-tax reduction of labor costs by $200,000 per year. The machine has a purchase price of $250,000, and it would cost an additional $10,000 to install the machine. In addition, to operate this machine, inventory must be increased by $15,000. The machine is categorized as 10-year property. After 2 years, it can be sold for $150,000. The tax rate is 34% and the cost of capital is 15%. What are the operating cash flows at the end of Year 1?

MACRS Depreciation Rates
Year10-Year15-Year
110.00%5.00%
218.00%9.50%
314.40%8.55%

◦ $132,000
◦ $136,420
◦ $140,840
◦ $165,780
◦ $175,240


Related Topics

Need homework help now?

Ask unlimited questions for free

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

kilada

  • Sr. Member
  • ****
  • Posts: 311
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 29% of students answer this correctly




rl

  • Member
  • Posts: 579
Reply 2 on: Apr 25, 2021
:D TYSM


ttt030911

  • Member
  • Posts: 315
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

For a complete list of videos, visit our video library