Question
In: Accounting
A company is considering the purchase of an industrial laser for $150,000. The device has a...
A company is considering the purchase of an industrial laser for $150,000. The device has a useful life of five years and a salvage (market) value of $30,000 at the end of those five years. The before-tax cash flow is estimated to be $45,000 per year. The laser would be depreciated using MACRS with a recovery period of three years. If the effective income tax is 25% and the after-tax MARR is 15%, use the PW method on an after-tax basis to determine the profitability of the laser and make a recommendation.
** Please do the math by hand and NOT using Excel, thank you.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
A company is considering the purchase of an industrial laser for $150,000. The device has a...
A company is considering the purchase of an industrial laser for
$150,000. The device has a useful life of five years and a salvage
(market) value of $30,000 at the end of those five years. The
before-tax cash flow is estimated to be $45,000 per year. The laser
would be depreciated using MACRS with a recovery period of three
years. If the effective income tax is 25% and the after-tax MARR is
15%, use the PW method on an after-tax...
A company is considering the purchase of an industrial laser for $150,000. The device has a...
A company is considering the purchase of an industrial laser for
$150,000. The device has a useful life of five years and a salvage
(market) value of $30,000 at the end of those five years. The
before-tax cash flow is estimated to be $45,000 per year. The laser
would be depreciated using MACRS with a recovery period of three
years. If the effective income tax is 25% and the after-tax MARR is
15%, use the PW method on an after-tax...
A company is considering the purchase of an industrial laser for $150,000. The device has a...
A company is considering the purchase of an industrial laser for
$150,000. The device has a useful life of five years and a salvage
(market) value of $30,000 at the end of those five years. The
before-tax cash flow is estimated to be $45,000 per year. The laser
would be depreciated using MACRS with a recovery period of three
years. If the effective income tax is 25% and the after-tax MARR is
15%, use the PW method on an after-tax...
Please show your calculations A company is considering the purchase of an industrial laser for $150,000....
Please show your calculations
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by skilled labor. The initial cost of the robot is $250,000, and
the annual labor savings are projected to be $125,000. If
purchased, the robot will be depreciated under MACRS as a
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An auto-part manufacturing company is considering the purchase of an industrial robot to do spot welding,...
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of an industrial robot to do spot welding, which is currently done
by skilled labor. The initial cost of the robot is $250,000, and
the annual labor savings are projected to be $125,000. If
purchased, the robot will be depreciated under MACRS as a
seven-year recovery property. This robot will be used for five
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reasonable.
Using the Special theory of Relativity
heuristically, discuss whether this theory can be correct or
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