Question: A computer costing $ 3 2 , 0 0 0 will be written off, using MACRS, by a small firm whose tax rate is 1

A computer costing $32,000 will be written off, using MACRS, by a small firm whose tax rate is 15%. Annual operating costs are $8000 for 9 years, after which there will be no salvage value. In year 4, what are the after-tax cash flows without Section 179?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Here is a challenge question if anyone wants to help out. :) $10 tip if completed in 1 1/2 hour. Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $80,000....

Q:

Hello, I download it fro course hero, but it does not have answer . Accounting 241 Final Exam Review 1) Which of the following is not a characteristic of managerial accounting? a) b) c) d) 2)...

Q:

Hello, it is final ACC 241 review. Someone submit it and did not give answer. I think this is help my final exam. So please give me answer. And i check my answer. Accounting 241 Final Exam Review 1)...

Q:

This is Strategic Management , please read the following case 9B06M092 about Lululemon Athletica: Primed for Growth and help me answer the questions related to this case study. Case questions:...

Q:

Hi, please provide detailed solution for these two questions. Thank you. RSM 333 Spring 2017 Assignment #2 Due Monday, February 6th @ 4pm in Commerce Office Problem #1: (20 marks) Project Analysis /...

Q:

Can you please check Answer "B". I think its right but not sure. Also, I keep getting J-2 and K-1 wrong and I can't figure it out. Hercules Exercise Equipment Co. purchased a computerized measuring...

Q:

Please help to solve the questions that are incorrect, thank you!! Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $60,000. The equipment falls into the...

Q:

Rodriguez began reviewing a proposal for a new hiking shoe being considered. The hiking shoe would be named Persistence. The hiking and active walking sector was one of the fastest growing areas of...

Q:

Part I: Cost of Capital & Capital Budgeting Decision Techniques Manic at MAD Inc. MAD Incorporated, established in 1999, has managed to earn a consistently high rate of return on its investments. The...

Q:

For this component of the project, you are asked to analysis of financial ratios for Lowe's, both through time and relative to financial ratios for Home Depot, using both tables and graphs. To...

Q:

The UK Competition & Markets Authority (CMA) states that the proposed $40bn merger deal between Nvidia and the UK chip specialist Arm raises serious competition concerns and warrants a more...

Q:

The day he was inaugurated, President Donald Trump issued his America First Energy Plan.[1] It presented policies it said would stimulate our economy, ensure our security, and protect our health and...

Q:

You have been asked to investigate events at the Wellness Co . in 2 0 2 0 . You learned that Wellness's CEO is evaluated based on return on assets, which is computed as ROA = earnings without...

Q:

Describe how total variable costs and unit variable costs behave with changes in the level of activity. If fixed costs increase, what would be the impact on the contribution margin and income from...