Arroy Snackfoods Old New Cost 75,000 215,000 Salvage for Depreciation Current Salvage Value 40,000 215,000 Actual...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Arroy Snackfoods Old New Cost 75,000 215,000 Salvage for Depreciation Current Salvage Value 40,000 215,000 Actual Expected Salvage 30,000 New Old Difference 43,000 7,500 35,500 61,300 33,780 Remaining Depreciation Schedules Year 1 Year 2 Year 3 Year 4 Year 5 68,800 41,280 24,768 24,768 7,500 7,500 7,500 7,500 17,268 17,268 Original Life Remaining Life 10 5 5 5 Depreciation Method Straight-lin MACRS Depreciable Life 10 5 TCF Calculation New Old Current Book Value 37,500 215,000 Salvage Energy Savings Salary Savings 6,000 68,000 Book Taxable Tax Rate WACC 25% 9.5% Taxes After-Tax Salvage Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Revenue Expenses Depreciation (74,000 35,500 61,300 33,780 17,268 17,268 Pre-Tax Operating Income Taxes Add: Depreciation After-tax Operating Cash Flow Terminal Cash Flow Total After-tax Cash Flow Payback Period Discounted Payback Period Net Present Value Internal Rate of Return Modified Internal Rate of Return (175,625) 12,384 TABLE 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% 2 44.45 32.00 24.49 18.00 9.50 7.219 14.81 19.20 17.49 14.40 8.55 6.677 7.41 11.52 12.49 11.52 7.70 6.177 11.52 8.93 9.22 6.93 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 4.46 6.55 5.90 4.522 9 10 11 12 13 14 15 16 6.56 5.91 4.462 6.55 5.90 4.461 3.28 5.91 5.90 4.461 5.91 4.462 5.90 4.461 5.91 4.462 2.95 4.461 4.462 18 4.461 19 4.462 4.461 21 2321 Arroy Snackfoods Old New Cost 75,000 215,000 Salvage for Depreciation Current Salvage Value 40,000 215,000 Actual Expected Salvage 30,000 New Old Difference 43,000 7,500 35,500 61,300 33,780 Remaining Depreciation Schedules Year 1 Year 2 Year 3 Year 4 Year 5 68,800 41,280 24,768 24,768 7,500 7,500 7,500 7,500 17,268 17,268 Original Life Remaining Life 10 5 5 5 Depreciation Method Straight-lin MACRS Depreciable Life 10 5 TCF Calculation New Old Current Book Value 37,500 215,000 Salvage Energy Savings Salary Savings 6,000 68,000 Book Taxable Tax Rate WACC 25% 9.5% Taxes After-Tax Salvage Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Revenue Expenses Depreciation (74,000 35,500 61,300 33,780 17,268 17,268 Pre-Tax Operating Income Taxes Add: Depreciation After-tax Operating Cash Flow Terminal Cash Flow Total After-tax Cash Flow Payback Period Discounted Payback Period Net Present Value Internal Rate of Return Modified Internal Rate of Return (175,625) 12,384 TABLE 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% 2 44.45 32.00 24.49 18.00 9.50 7.219 14.81 19.20 17.49 14.40 8.55 6.677 7.41 11.52 12.49 11.52 7.70 6.177 11.52 8.93 9.22 6.93 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 4.46 6.55 5.90 4.522 9 10 11 12 13 14 15 16 6.56 5.91 4.462 6.55 5.90 4.461 3.28 5.91 5.90 4.461 5.91 4.462 5.90 4.461 5.91 4.462 2.95 4.461 4.462 18 4.461 19 4.462 4.461 21 2321
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Evaluate and simplify the following derivatives. d (4u + u du 8u+ 1/
-
At year-end, the perpetual inventory records of Brewer Company showed merchandise inventory of $98,000. The company determined, however, that its actual inventory on hand was $95,700. Record the...
-
How do you flow down requirements?
-
The balance sheets of UK plc and its subsidiaries France SA and US Inc at 30 September 1998 (the accounting date for all three companies) are given below: Note 1 UK plc has owned \(100 \%\) of the...
-
The Wendt Corporation had $10.5 million of taxable income. a. What is the companys federal income tax bill for the year? b. Assume the firm receives an additional $1 million of interest income from...
-
Despite recent deregulation, significant rules still surround the merger process. Write a summary of the Bank Merger Act. Do you think it is useful and/or appropriate? Why or why not? Document one...
-
The following information was taken from the work sheet of Graff Home Repairs. Use the Information to answer the questions below Total Total Assets Liabilities Capital Withdrawals Revenue Expenses...
-
Ques.5: calculate the net ultimate bearing capacity of rectangular footing 2 m x 4 m in plan, founded at a depth of 1.5 m below the ground surface. The load on the footing acts at an angle of 15 to...
-
Your sponsor wants you to create a new delivery system. After you ask why the new system is needed and determine what is wrong with the current system, you are then able to create which key document?...
-
Ques.6: The square footing (6 m 6 m) is founded at a depth 3 m below the ground surface. Given: ex-0.60 m and ey= 0.75 m, determine Quit. The soil properties are c= 0, D=33, Y= 18.5 kN/m. The soil is...
-
Describe types of tools are used in plumbing process in details.
-
Two steel bars AB and BC are pinned at each end support 250 KN vertical load. The Tensile strength and compressive strength of the material is 350 MPa. Safety factors are 2 and 3.5 for tension and...
-
A company polls recent customers on their intent to repurchase. It achieves a response rate of 476. Of the respondents, 60% say they plan to repurchase. What is the minimum level of repurchase based...
-
A certain Christmas tree ornament is a silver sphere having a diameter of 8.50 cm. Determine an object location for which the size of the reflected image is three-fourths the size of the object. Use...
-
compare the interrelationships and conflicts among individuals, groups, and organizations that result in emotions and stress;
-
Prepare budgeted income statement (Learning Objective 2) Representatives of the various departments of Go Sports have assembled the following data. As the business manager, you must prepare the...
-
discuss burnout and ways to avoid it; and
Study smarter with the SolutionInn App