a. A new operating system for an existing machine is expected to cost $580,000 and have a useful life of six years. The system yields an incremental after-tax income of $175,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $19,600. (Round your answers to the nearest whole dollar.)

b. A machine costs $430,000, has a $27,800 salvage value, is expected to last eight years, and will generate an after-tax income of $78,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.)

Inventories

Inventories on the Consolidated Balance Sheets are valued at the lower of cost and net realizable value on a weighted-average cost basis. The Company reduces the carrying value of inventory through a lower of cost and net realizable value adjustment, the impact of which is reflected in cost of sales, exclusive of depreciation and amortization, on the Consolidated Statements of Operations and Comprehensive Income (Loss). The lower of cost and net realizable value adjustment is based on the Company’s consideration of multiple factors and assumptions including demand forecasts, current sales volumes, expected sell-off activity, composition and aging of inventory, historical recoverability experience and risk of obsolescence from changes in economic conditions or customer preferences.

Additionally, as part of inventory valuation, inventory shrinkage estimates based on historical trends from actual physical inventories are made each quarter that reduce the inventory value for lost or stolen items. The Company performs physical inventories on a periodic basis and adjusts the shrink estimate accordingly.

Using the Above information about Inventory,

What Inventory Costing method does A&F use to value it's inventory ?

Kolby’s Korndogs is looking at a new sausage system with an installed cost of $720,000. This cost will be depreciated straight-line to zero over the project’s 6-year life, at the end of which the sausage system can be scrapped for $98,000. The sausage system will save the firm $209,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $61,000.

What is the aftertax salvage value of the equipment? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

What is the annual operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

If the tax rate is 23 percent and the discount rate is 9 percent, what is the NPV of this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

^{What is an opportunity cost? How is this concept used in TVM analysis, and where is it shown on a time line? Is a single number used in all situations? Explain.}

Create an application named Rusty2 that asks the user for the dealer cost of a car, and the cleaning cost, and then displays the retail cost. Your application should simply send the dealer cost and cleaning cost to the getRetailPrice method in the Dealership class to obtain the retail cost.

here below is the dealership class code amd meed to create rusty2 code

import java.util.Calendar;
public class Dealership {

// public static final class variables

public static final int YEAR_STARTED = 1995;
public static final String COMPANY_NAME = "The Rusty Lemon";
public static final String COMPANY_URL = "www.TheRustyLemon.com";
public static final String COMPANY_ADDRESS = "123 Rustbelt Road, Somewhere, SomeState, 12345";
public static final String COMPANY_SLOGAN = "Many parts of our cars run great!";
public static final double STANDARD_MARKUP = 0.50;
public static final String COMPANY_EMAIL = "[email protected]";

// public static methods

public static String getCompanyBanner() {

return COMPANY_NAME + "\n(Selling rusty lemons since "
+ YEAR_STARTED + ")\n" + COMPANY_ADDRESS + "\n"
+ COMPANY_URL + "\n" + COMPANY_SLOGAN + "\n";

}

public static double getRetailPrice(double dealerCost, double cleaningCost) {

double markup = dealerCost * STANDARD_MARKUP;
return dealerCost + cleaningCost + markup;

}
public static int getYearsInBusiness()
{
int currentYear = Calendar.getInstance().get(Calendar.YEAR);
int yearsInBusiness = currentYear - YEAR_STARTED;
return yearsInBusiness;

}
}

Green Co. has a machine with a total cost of $70 million, and the machine is placed in service at the beginning of 2018. The machine is depreciated using the the sum-of-the-years'-digits method with 10-year useful life and $4 million in residual value. At the beginning of 202, Green decides to change to the straight-line method with 11-year useful life and $5.6 million in residual value.

Required: How much is the depreciation expense related to the machinein 2021? Please share the Calculation and Journal Entry recorded in 2021.

Calculate cost of debt for the following: The bond with a face value of 1000 were trading at RM 940 with 5 years to maturity ( annual coupon payment of 5%). Buying the truck means that he would incurring a cost of RM 85,000 each year for the whole feet. The company tax rate is 30%. The cost of capital is same as cost of deb. Which one is wiser equity or debt?

What are the differences in depreciation, cost recovery, amortization, and depletion.

Discuss MACRS

Discuss the reasons M&A are described as a cost effective method for expansion purposes in the business of corporations. Use an example for a successful M&A in Zambia as a point of reference

At the beginning of the year, Grouper Ltd. had 910 units with a cost of $5 per unit in its beginning inventory. The following inventory transactions occurred during the month of January:

Prepare journal entries for these January transactions assuming that Grouper Ltd. uses FIFO under a periodic inventory system. Grouper updates records at month end.