Builtrite is considering purchasing a new machine that would cost $60,000 and the machine would be...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Builtrite is considering purchasing a new machine that would cost $60,000 and the machine would be depreciated (straight line) down to $0 over its five-year life. At the end of five years, it is believed that the machine could be sold for $22,000. The current machine being used was purchased 3 years ago at a cost of $40,000 and it is being depreciated down to zero over its 5-year life. The current machine's salvage value now is $12,000. The new machine would increase EBDT by $56,000 annually and inventory by $5000 annually. Builtrite's marginal tax rate is 34%. What is the TCF associated with the purchase of this new machine? $22,000 $19,520 $14,520 $5,000 Builtrite is considering purchasing a new machine that would cost $60,000 and the machine would be depreciated (straight line) down to $0 over its five-year life. At the end of five years, it is believed that the machine could be sold for $22,000. The current machine being used was purchased 3 years ago at a cost of $40,000 and it is being depreciated down to zero over its 5-year life. The current machine's salvage value now is $12,000. The new machine would increase EBDT by $56,000 annually and inventory by $5000 annually. Builtrite's marginal tax rate is 34%. What is the TCF associated with the purchase of this new machine? $22,000 $19,520 $14,520 $5,000
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
The graph of f is given. (a) Why is f one-to-one? (b) What are the domain and range of f 1 ? (c) What is the value of f 1 (2)? (d) Estimate the value of f -1 (0). 1
-
So what is the argument about?
-
Express each of the following using the summation (or Sigma) notation. In parts (a), (d), and (e), n denotes a positive integer. (a) (b) 1 + 4 + 9 + 16 + 25 + 36 + 49 (c) 13 - 23 + 33 - 43 + 53 - 63...
-
The Longo Corporation issued \(\$ 50\) million maturity value of six percent coupon rate bonds, with interest paid semiannually. At the time of the bond issuance, equivalent risk-rated debt...
-
Suppose you wish to learn about the size of the soft-drink market, particularly root beer sales, growth patterns, and market shares. Indicate probable sources for these secondary data.
-
Steve, an independent contractor, performed roofing work and was paid for his services with digital assets. How does Steve report the value
-
3-9. A disk clutch is to be used as an overload protection device for a conveyor system drive. The conveyor is driven by a 1200 rpm, 7.5 hp induction motor by means of a gearbox having a ratio r of...
-
The expected dividend per share on the equity share of Roadport Limited is $2.00. The dividend per share of Roadport Limited has grown over the past five years at the rate of 5% per year. This growth...
-
Put the equation y Answer: x+16x+63 into the form y = (x + h) + k:
-
5.15 Water is added to the tank shown in Fig. P5.15 through a verti- cal pipe to maintain a constant (water) level. The tank is placed on a horizontal plane which has a frictionless surface....
-
Calculate the cost of debt. Calculate the cost of equity. Calculate the weight of debt and equity. Calculate the WACC. Table 4 Stock Info Amount Bond Info Amount Shares Outstanding 100 Face value...
-
Please help with at least three or more sources for a three to four page paper. Topic is soil compaction and stabilization. This is for soil mechanics for construction class.
-
Use the above non-recursive mergeSort method to analyze the changes made to an ArrayList of Integers - referred to as numbers, which contains the following integers: 56 32 24 74 29 84 13 65 70 52 16...
-
Determine two different Hamilton circuits in each of the following graphs. A B F G
-
_________ requires society to use its resources to the fullest extentgetting the _________ we can out of our scarce resources.
-
To generate economic growth, a society must produce _________ consumer goods and _________ capital goods in the present.
-
Advancements in _________, improvements in _________, or new _________ could all lead to outward shifts of the production possibilities curve.
Study smarter with the SolutionInn App