An asset with a first cost of $300,000 is depreciated by the MACRS method using a 5-year
Question:
An asset with a first cost of $300,000 is depreciated by the MACRS method using a 5-year recovery period. Determine the economic value added in year 2, if the net operating profit after taxes is $70,000 and the company uses an after-tax MARR of 15% per year. The MACRS rates for years 1 and 2 are 20% and 32%, respectively.
MARRMinimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 61% (13 reviews)
BV 1 300000 3000...View the full answer
Answered By
Robert Mbae
I have been a professional custom essay writer for the last three years. Over that period of time, I have come to learn the value of focusing on the needs of the clients above everything else. With this knowledge, I have worked hard to become an acclaimed writer that can be trusted by the customers to handle the most important custom essays. I have the necessary educational background to handle projects up to the Ph.D. level. Among the types of projects that I've done, I can handle everything within Dissertations, Project Proposals, Research Papers, Term Papers, Essays, Annotated Bibliographies, and Literature Reviews, among others.
Concerning academic integrity, I assure you that you will receive my full and undivided attention through to the completion of every essay writing task. Additionally, I am able and willing to produce 100% custom writings with a guarantee of 0% plagiarism. With my substantial experience, I am conversant with all citation styles ranging from APA, MLA, Harvard, Chicago-Turabian, and their corresponding formatting. With all this in mind, I take it as my obligation to read and understand your instructions, which reflect on the quality of work that I deliver. In my paper writing services, I give value to every single essay order. Besides, whenever I agree to do your order, it means that I have read and reread your instructions and ensured that I have understood and interpreted them accordingly.
Communication is an essential part of a healthy working relationship. Therefore, I ensure that I provide the client with drafts way long before the deadline so that the customer can review the paper and comment. Upon completion of the paper writing service, the client has the time and right to review it and request any adjustments before releasing the payment.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
An asset with a first cost of $9000 is depreciated by MACRS over a 5-year recovery period. The CFBT is estimated at $10,000 for the first 4 years and $5000 thereafter as long as the asset is...
-
An asset with a first cost of $350,000 three years ago is sold for $385,000. The asset was depreciated by the MACRS method and has a book value of $100,800 at the time of sale. Determine the capital...
-
An asset with a first cost of $20,000 has an annual operating cost of $12,000 and a $4000 salvage value after its 4-year life. If the project will be needed for 6 years, what would the market...
-
Implement and maintain internal control procedures This task will require you to roleplay a meeting with your supervisor, Chris Kohler. You will discuss the reporting requirements and timetables...
-
Matrix Construction Company is considering selling excess machinery with a book value of $75,000 (original cost of $200,000 less accumulated depreciation of $125,000) for $60,000 less a 5% brokerage...
-
Decision among mutually exclusive investments Jamis Hospitality is planning to open a new restaurant in the Netherlands. It has identified three different locations in Rotterdam and needs to pick one...
-
Which is better for a lender: 5% compounded annually or 5% compounded quarterly?
-
D-List Calendar Company specializes in manufacturing calendars that depict obscure comedians. The company uses a standard cost system to control its costs. During one month of operations, the direct...
-
identify the constraints and suggest some recommendations for improving the sustainable long-term economic growth and development in the African countries mineral beneficiation process.
-
Allene can be converted to a trimer (compound A) of molecular formula C9H12. Compound A reacts with dimethyl acetylenedicarboxylate to give compound B. Deduce the structure of compound A. 0 0 COCH,...
-
If the after-tax ROR is 11.4% and the corporate T e is 39%, the approximate before-tax rate of return is closest to: (a) 6.8% (b) 15.4% (c) 18.7% (d ) 19.7%
-
(a) What does the term economic value added (EVA) mean relative to the bottom line of a corporation? (b) Why might an investor in a public corporation prefer to use the EVA estimates over the CFAT...
-
In Problems 4958, find a polynomial function with the given real zeros whose graph contains the given point. Zeros: -5(multiplicity 2), 2(multiplicity 1), 4(multiplicity 1); degree 4; contains the...
-
Recommendation for Starbucks to improve its profitability in Canada. also explain media strategy which can they use.
-
A bow slides across a violin string that has length 31.2cm and mass 0.195g. The string vibrates at its fundamental frequency to produce the musical note A (440Hz).
-
Is Amazon approaching a Global integrated marketing communications? - How does Amazon strengthen its Brand equity? - Is communication strategy centralized?
-
Construct a BST by inserting the following keys into an empty BST, in order. 15, 17, 10, 2, 19, 18, 14, 8, 7, 16, 3, 4, 11. b. (5 points) Delete the node with value 15 from the resulting BST tree in...
-
Initially, car 1 is traveling in the southwest direction and car 2 is traveling north. Cars 1 & 2 collide at the four-way intersection. Cars 1 & 2 are stuck together and traveling northwest upon the...
-
In 2005, Fung et al. published a study reporting that patients prefer technical quality versus interpersonal skills when selecting a primary care physician. Participants were presented with report...
-
Citing a scientific article, explain in your own words, how DNA fingerprinting has been used in forensic science to solve crimes and why it may not always be accurate or effective.
-
For the estimates in Problem use a spreadsheet-based analysis to determine the first cost for the augmentation of the current system that will make the defender and challenger break even. Is this a...
-
Herald Richter and Associates, 5 years ago, purchased for $45,000 a microwave signal graphical plotter for corrosion detection in concrete structures. It is expected to have the market values and...
-
State what is meant by the cash flow approach to replacement analysis, and list two reasons why it is not a good idea to use this method.
-
answer the following question. "What are the critical success factors for Project Management? explain which ones are most critical to the success of Compliance Related Projects in the Financial...
-
Follow the news over the next few days; keep your eyes open for clear examples of PR at work. Make note of those you find, including a description of the PR efforts. This can include something like a...
-
Philosophy of Education Instructions Philosophy of Education (20 points): You will compose a Philosophy of Education that reflects the teaching methodologies or beliefs that guide (or will guide)...
Study smarter with the SolutionInn App