A $67,000 machine with a 8-year class life was purchased 2 years ago. The machine will...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66486e5c57753_87566486e5b996e8.jpg)
Transcribed Image Text:
A $67,000 machine with a 8-year class life was purchased 2 years ago. The machine will now be sold for $50,000 and replaced with a new machine costing $79,000, with a 10-year class life. The new machine will not increase sales, but will decrease operating costs by $11,000 per year. Simplified straight line depreciation is employed for both machines, and the marginal corporate tax rate is 34 percent. What is the incremental annual cash flow associated with the project? A $67,000 machine with a 8-year class life was purchased 2 years ago. The machine will now be sold for $50,000 and replaced with a new machine costing $79,000, with a 10-year class life. The new machine will not increase sales, but will decrease operating costs by $11,000 per year. Simplified straight line depreciation is employed for both machines, and the marginal corporate tax rate is 34 percent. What is the incremental annual cash flow associated with the project?
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Joshua Tree Inc. reported that at the end of 2012 net accounts receivable of 2,050 (the net value at the end of 2011 was 1,090). Their allowance for doubtful accounts at the end of 2012 was 150 (the...
-
Discuss the different types of e-commerce.
-
Draw a product structure diagram from the bill of material for an Xavier skateboard shown below. Assuming a 10% profit margin, how should the Xavier bepriced? Level Quantity Price Item Skateboard...
-
What is the formula for calculating debt ratio?
-
Sentry Transport, Inc., of Atlanta provides in-town parcel delivery services in addition to a full range of passenger services. Sentry engaged in the following activities during the current year: a....
-
The Nile Corporation has 9.9 million shares of common stock outstanding and 430,000 6 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $47 per share...
-
1. The Anderson Corporation (an all-equity-financed firm) has a sales level of $280,000 with a 10 percent profit margin before interest and taxes. To generate this sales volume, the firm maintains a...
-
What journal entry would be made to record the payment of \($1,500\) cash for factory utilities?
-
In what way do manufacturing firms and merchandising firms work together to provide end consumers with products?
-
Name the three types of business entities and briefly describe the nature of each.
-
Examine the sales and use tax statutes of your home state and determine the following: A. What is the type of sales tax imposed by the state? B. On whom is the legal imposition of the sales tax? C....
-
Which type of accounting would produce reports relevant to stockholders?
-
The KLM Corporation reported the following data for the year ended 2021: Sold building with original cost of $400,000,000 (50% depreciated) for $275,000,000 in cash. - Acquired land of total cost...
-
Based on the scenario described below, generate all possible association rules with values for confidence, support (for dependent), and lift. Submit your solutions in a Word document (name it...
-
Stanford Corporation began the year with 150,000 shares of common stock outstanding. On March 1, an additional 10,000 shares of common stock were issued. On August 1, another 16,000 shares of common...
-
The following summarized data relate to Robert Corporation's current operations: Required Prepare a multiple-step income statement for Robert Corporation for the year. Include earnings per share...
-
Net sales, net income, and total asset figures for Janice Controls, Inc., for five consecutive years are given below (Janice manufactures pollution controls): Required a. Calculate trend percentages,...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App