Q3. [ ] An asset has a purchase price of SR 800,000 and expected to realize...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Q3. [ ] An asset has a purchase price of SR 800,000 and expected to realize a net revenue of SR 190,000 each year for the next 5 years. The asset has no salvage value at the end of its useful life. Assume an effective tax rate of 20%, and an after-tax MARR of 10% per year. Determine whether the asset is economically acceptable based on a present worth analysis of After Tax Cash Flow (ATCF) if a double-declining depreciation method is used. Q3. [ ] An asset has a purchase price of SR 800,000 and expected to realize a net revenue of SR 190,000 each year for the next 5 years. The asset has no salvage value at the end of its useful life. Assume an effective tax rate of 20%, and an after-tax MARR of 10% per year. Determine whether the asset is economically acceptable based on a present worth analysis of After Tax Cash Flow (ATCF) if a double-declining depreciation method is used.
Expert Answer:
Related Book For
Managerial Accounting Decision Making and Performance Management
ISBN: 978-0273764489
4th edition
Authors: Ray Proctor
Posted Date:
Students also viewed these finance questions
-
For this project you will have to contact a local bank and get information about their mortgage products. You would like to finance the purchase of a new house. The house is worth $390,000. And you...
-
You will have to describe a problem commonly associated with the need for human services, provide a brief background of the problem, choose and describe an agency dealing with this issue and provide...
-
The LM curve is steeper the the interest sensitivity of money demand and the the effect of income on money demand. A) smaller; greater B) greater; greater C) greater; smaller D) smaller; smaller
-
Comparative figures from the statement of profit or loss of Misty Ltd are shown below: 2017 2016 Revenue (all sales) Cost of sales $450 000 292 300 $390 000 287 000 Gross profit Expenses (including...
-
What is a typical merger premium paid in a merger or acquisition? What effect does this premium have on the market value of the merger candidate and when is most of this movement likely to take place?
-
Find the coordinate vector [x] B of x relative to the given basis B = {b 1,....., b n }. [2- ] - [ ] = 4 [F] = 4 =
-
True or False. Approximate solutions of nonlinear vibration problems can be found using numerical methods such as the Houbolt, Wilson, and Neumark methods.
-
The controller of Trenshaw Company wants to improve the companys control system by preparing a month-by-month cash budget. The following information is for the month ending July 31, 2014. June 30,...
-
Suppose f(x) is increasing and concave down over the interval [3, 9]. For each of the following, select the GREATER of the values and defend your answer. Problem 1) Of(5) Of(9)
-
Evaluate the matrix elements (or expectation values) given below. If any vanishes, explain why it vanishes using simple symmetry (or other) arguments. [In (a) and (b), |nlm stands for the energy...
-
Q5: Heat is often generated by blowing air through a coil of wire that conducts an electric current in a dryer. The thermal energy generated by the electrical resistance heating in the wire is then...
-
Internal Evaluation. Internal analysis of the company, to include the analysis of: The company's current situation and the key challenges it needs to overcome (if any) - any existing purpose...
-
How to modify the following algorithms to display the total number of swap operations. The following algorithms are given: def Algorithm_1(lyst): i = 0 while i < len(lyst) - 1: minIndex = i j = i + 1...
-
Propose a NEW operating systems. The NEW operating systems can be based on Windows or Unix/Linux or Mobile OS or independent based platform. Provide details and justifications of your NEW operating...
-
1) What is a material handling system? Explain. 2) List and describe the 5 uses of packaging. 3) Advise on some ways that a company can minimize its potential cargo loss. 4) List 5 types of commonly...
-
DBS Bank is launching a new investment product targeting senior citizens in Asia. The company decides to use direct marketing for selling the product. 1. What direct marketing strategy would allow...
-
Follow the instructions and answer all the questions deliver original work I would like the contents of the .sql file along with the python script, as per the instructions This week, you learned...
-
Suppose the S&P 500 futures price is 1000, = 30%, r = 5%, = 5%, T = 1, and n = 3. a. What are the prices of European calls and puts for K = $1000? Why do you find the prices to be equal? b. What...
-
Medibed manufactures hospital beds. These are complicated mobile platforms with several moving parts. It is located on the outskirts of Bromsgrove and has good connections to the motorway system....
-
The Eldave Advertising Agency has been working on a campaign for Greenpoint Leisure Limited for the last four months. The campaign is for Greenpoints eco-friendly holidays in South America and uses...
-
TBS produces two products in a single factory. The following details have been extracted from the standard marginal cost cards of the two products: TBS uses a standard marginal costing system linked...
-
In your opinion, why is more than 60% of todays primary research data being generated by online self-reporting survey methods?
-
Use your statistical software package to obtain descriptive statistics for variables X1 to X8. Are the results similar or different from what your answers would be regarding an effective influencer?
-
How would you improve the social media influencer questionnaire?
Study smarter with the SolutionInn App