Your firm needs a machine which costs $220,000, and requires $43,000 in maintenance for each year...

Your firm needs a machine which costs $220,000, and requires $43,000 in maintenance for each year of its 7 year life. After 5 years, this machine will be replaced. The machine falls into the MACRS 7-year class life category. Assume a tax rate of 30% and a discount rate of 15%. What is the depreciation tax shield for this project in year 7?

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jeff jeffy answered 6 months ago

Your firm needs a machine which costs $220,000, and requires$43,000 in maintenance for each year...

Your firm needs a machine which costs $220,000, and requires $43,000 in maintenance for each year of its 5 year life. After 5 years, this machine will be replaced. The machine falls into the MACRS 5-year class life category. Assume a tax rate of 21% and a discount rate of 15%. What is the depreciation tax shield for this project in year 5?$20,021.76$25,344$3,801.60$5,322.24

Your firm needs a machine which costs $130,000, and requires $28,000 in maintenance for each year...

Your firm needs a machine which costs $130,000, and requires $28,000 in maintenance for each year of its 3 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 21% and a discount rate of 13%. What is the depreciation tax shield for this project in year 3? $15,210 $4,043.13 $19,253 $2,502.89

Your firm needs a machine which costs $160,000, and requires $31,000 in maintenance for each year...

Your firm needs a machine which costs $160,000, and requires $31,000 in maintenance for each year of its 3 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 21% and a discount rate of 15%. What is the depreciation tax shield for this project in year 3? $23,696 $18,720 $4,976.16 $3,554.40

Your firm needs a machine which costs $270,000, and requires $42,000 in maintenance for each year...

Your firm needs a machine which costs $270,000, and requires $42,000 in maintenance for each year of its 7 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 7-year class life category. Assume a tax rate of 40% and a discount rate of 16%. What is the depreciation tax shield for this project in year 7?

Your firm needs a machine which costs $140,000, and requires $35,000 in maintenance for each year...

Your firm needs a machine which costs $140,000, and requires $35,000 in maintenance for each year of its 10 year life. After 5 years, this machine will be replaced. The machine falls into the MACRS 10-year class life category. Assume a tax rate of 40% and a discount rate of 13%. What is the depreciation tax shield for this project in year 10?

Your firm needs a machine which costs $125,000, and requires $5,000 in maintenance for each year...

Your firm needs a machine which costs $125,000, and requires $5,000 in maintenance for each year of its three-year life. After three years, this machine will be replaced. The machine falls into the MACRS three-year class life category. Assume a tax rate of 35 percent and a discount rate of 10 percent. If this machine can be sold for $15,000 at the end of year 3, what is the after-tax salvage value? $11,692.69 $9,750.00 $12,991.88 $9,262.50

our firm needs a machine which costs $100,000, and requires $25,000 in maintenance for each year...

our firm needs a machine which costs $100,000, and requires $25,000 in maintenance for each year of its 3 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 21% and a discount rate of 14%. If this machine can be sold for $10,000 at the end of year 3, what is the after tax salvage value? $5,854 $2,590.00 $7,900.00 $9,456.10

1. Your firm needs a computerized machine tool lathe which costs $43,000 and requires $11,300 in...

1. Your firm needs a computerized machine tool lathe which costs $43,000 and requires $11,300 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 34 percent and a discount rate of 13 percent. If the lathe can be sold for $4,300 at the end of year 3, what is the after-tax salvage value? (Round your answer to...

your firm needs a computerized line boring machine which costs 80,000 and requires 20,000 in maintenance...

your firm needs a computerized line boring machine which costs 80,000 and requires 20,000 in maintenance for each year of its three year life. After three years, the salvage value will be zero. The machine falls into the class 10 equipment category (cca rate 30%). Assume a tax rate of 34% and a discount rate of 10%. What is the projects EAC? A) -2,374 B) -37,539 C) -32,905

Your firm needs new equipment that costs $80,000 and requires $20,000 in maintenance for each year...

Your firm needs new equipment that costs $80,000 and requires $20,000 in maintenance for each year of its three year life. After three years, the salvage value will be zero. The machine falls into the Class 10 equipment category (CCA rate 30%). Assume a tax rate of 34% and a discount rate of 10%. Compute the depreciation tax shield for year 3. *Note: A CCA table is required for this question. PVCCATS does not apply.

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