A laser system costs $190,000. Its useful life is estimated to be 12 years and have a
Fantastic news! We've Found the answer you've been seeking!
Question:
A laser system costs $190,000. It’s useful life is estimated to be 12 years and have a salvage value of $5,000. It will produce $45,000 in net revenue each year during its life. Corporate income-tax rate is 25% and the after-tax MARR is 10%. Consider the scenario in which the laser is kept for 12 years.
What is the AW (annual worth) if we use double declining balance depreciation (no half-year convention, no switching) as part of the ATCF (after tax cash flow) analysis?
Expert Answer:
Answer rating: 100% (QA)
Cost190000 Life12 years Salavage value5000 Revenue 45000 each year income tax25 discount rate10 Double declining rate 21life100 166667 Year CFBTbefore ... View the full answer
Posted Date:
Students also viewed these finance questions
-
A firm holds a patent that is estimated to be worth $20 million. The patent is repeatedly challenged in the courts by a large number of (money-seeking) firms, each hoping to grab away the patent. If...
-
The security market line is estimated to be k = 5% 1 110.4% - 5%2b. You are considering two stocks. The beta of A is 1.4. The firm offers a dividend yield during the year of 4 percent and a growth...
-
What SUP Partial Year Double Declining Balance Depreciation for Asset 1004 Create a new worksheet to calculate depreciation for a table purchased on August 1, 2017, for $95,000. It has an estimated...
-
Mixing together solutions of acetic acid and sodium hydroxide can make a buffered solution. Explain. How does the amount of each solution added change the effectiveness of the buffer?
-
Suppose you own a small company that manufactures baseball equipment. You are aware that Russia is a large market, and you are considering exporting your products there. However, you know you need to...
-
Jamie Peters invested $100,000 to set up the following portfolio one year ago: a. Calculate the portfolio beta on the basis of the original cost figures. b. Calculate the percentage return of each...
-
Transformational leadership theory: A. Was developed in the mid-1970s by Warren Bennis. B. Is the ability to transform followers to become more self-directed in all they do. C. Involves leaders who...
-
Mitchell Co. is experiencing a decrease in sales and operating income for the fiscal year ending December 31, 2012. Gene Lumpkin, controller of Mitchell Co., has suggested that all orders received...
-
If f(x)= 3x + x 2 3x - x " A. 1 6x+1 B. 6x-1 -6 C. (3x-1) -2x D. (x-x) 36x-2x E. (x -x) then f'(x) is
-
Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Sales for the first quarter of the following year are projected at $180 million. Accounts receivable at the...
-
Identify the factors that Alex should consider when deciding whether or not to accept this offer. Acaciawood Partners LLP is a law firm that specializes in intellectual property ligation and...
-
(5 points) Define f: R R f(x, y) so (x, y) = (0,0) xy2 (x, y) =(0,0) (a) (1 point) Compute the partial derivatives for f at (0,0). (b) (2 point) Determine which directional derivatives exist for f at...
-
What are the possible property insurance coverage for the below scenario? DOL (Date of Loss), April 1, 2022. Total Loss by Fire. 9 Months to rebuild. House Contents List Provided by Bob Smith: 3...
-
Wickersham Corp. is contemplating the purchase of a machine that would improve the overall efficiency of the production process. Horton, the General Manager, believes that the new machine will:...
-
Upon retirement, your goal is to spend 5 years traveling around the world. To travel in the style to which you are accustomed will require $200,000 per year at the beginning of each year. If you plan...
-
For Periodic-Review, Order-Up-to-Level (R.S) control systems, develop decision rules for determining a safety factor k (assuming normally distributed demand during the period of interest, R+L): a)...
-
If the CPI on a project is .85 and EV is $10,000, what must the AC be? The original plan for the project was for it to last one year at a cost of $100,000. Using the following information, calculate...
-
The manager of a local convenience store is expanding his line of small toy items. To price these new items, the manager is looking at the prices being charged by competing retailers in his area. For...
-
Describe and explain the difference between order-driven and quote-driven trading.
-
Describe the changes that have taken place in share trading venues over the past decade.
-
You have been asked by the prospective directors of a shortly to be established business what is meant by ordinary shares, preference shares and debt capital. Further, you have been asked to provide...
Study smarter with the SolutionInn App