Question: Eastern Inc. purchases a machine for $35,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed depreciation percentages as follows: year

Eastern Inc. purchases a machine for $35,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1= 20.00%; year 2 = 32.00%; year 3 = 19.20 %; year 4 = 11.52%. The firm has a tax rate of 40%. If the machine is sold at the end of two years for $25,000, what is the cash flow from disposal

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

2. the revenue is $42,000, the cost of goods is sold 21,000, other expenses (from selling and administration are $6000, and depreciation is 2,000. What is EBIT? A) $13,000 B) $29,000 C) $4,000 D)...

answer questions Previous Page Next Page Page 3 Question 4 (6 points) Eastern Inc. purchases a machine for $70,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed...

Eastern Inc. purchases a machine for $15,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1 = 20.00%; year 2 = 32.00%;...

Question 17 (1 point) Eastern Inc. purchases a machine for $140,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1 =...

Eastern Inc. purchases a machine for $70,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1 = 20.00%; year 2 = 32.00%;...

Eastern Inc. purchases a machine for $17,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed depreciation percentages as follows: year t = 22% year 2 = 31% year 3 =;...

didnt mean to post it. refund my question Easter Inc. purchases a machine for $15,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed depreciation percentages as...

I need answers for these 7 questions and make it simple if you can Question #1: Case study on Cash Flow Project Decision Based on Cash flow Forecast Eric Casting Corporation is considering adding a...

Find the first four nonzero terms in a power series expansion about x= 0 for the solution to the given initial value problem. y" + (x- 7)y'-y = 0; y(0) = - 7, y'(0) = 0 y(x) =+. (Type an expression...

(1) What is sensitivity analysis? (2) Perform a sensitivity analysis on the unit sales, salvage value , and cost of capital for the project. Assume each of these variables can vary from its...

Which of the following invests primarily in common stock of publicly traded firms? treasury bonds municipal bonds fixed - income funds equity funds

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

Identify the ways language works to help people communicate the five functional communication competencies

The Functions of Language Problems with Language

The Nature of Language