A new machine costing $120,000 is expected to save the McKaig Brick Company $20,000 per year...
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A new machine costing $120,000 is expected to save the McKaig Brick Company $20,000 per year for 12 years before depreciation and taxes. The machine will be depreciated as a 7-year class MACRS asset. The firm's marginal tax rate is 40 percent. Use Table 9A-3 to answer the questions below. Round your answers to the nearest dollar. What are the annual net cash flows associated with the purchase of this machine? Year 1 2 3 4 5 600 7 8 9 10 11 12 $ $ LA LA $ $ LA LA NCF 18857 18857 18857 18857 18857 18857 18857 12000 12000 12000 12000 12000 A new machine costing $120,000 is expected to save the McKaig Brick Company $20,000 per year for 12 years before depreciation and taxes. The machine will be depreciated as a 7-year class MACRS asset. The firm's marginal tax rate is 40 percent. Use Table 9A-3 to answer the questions below. Round your answers to the nearest dollar. What are the annual net cash flows associated with the purchase of this machine? Year 1 2 3 4 5 600 7 8 9 10 11 12 $ $ LA LA $ $ LA LA NCF 18857 18857 18857 18857 18857 18857 18857 12000 12000 12000 12000 12000
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To calculate the annual net cash flows associated with the purchase of the machine we need to consid... View the full answer
Related Book For
Contemporary Financial Management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
Posted Date:
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