Question: 8) Seeing Red has a new project that will require fixed depreciated on a 5-year MACRS schedule. The annu on a 5-year MACRS schedule. The
8) Seeing Red has a new project that will require fixed depreciated on a 5-year MACRS schedule. The annu on a 5-year MACRS schedule. The annual depreciation percentages are 20 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 perc -20 percent, 11.52 percent, and 11.52 percent, respectively. The company has a tax rate of 35 percent. What is the depreciation tax shield for t that will require fixed assets of $883,000, which will A) $59,338 B) $51,508 C) $61,810 D) $98,896 E) $35,603 9) Pear Orchards is evaluating a new project that will require equipment of $249,00 equipment will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 pe respectively. The company plans to shut down the project after 4 years. At that time, the equipment could be sold for $67,100. However, the company plans to keep the equipme different project in another state. The tax rate is 40 percent. What aftertax salvage value the company use when evaluating the current project? A) $57,471 B) $76,729 C) $0 D) $43,027 E) $67,100
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