Question: need help with a, b, c, d in the format shown below Initial investment at various sale prices Edwards Manufacturing Company (EMC) is considering replacing
Initial investment at various sale prices Edwards Manufacturing Company (EMC) is considering replacing one machine with another. The old machine was purchased 3 years ago for an installed cost of $10,000. The firm is depreciating the machine under MACRS, using a 5-year recovery period. (See table for the applicable depreciation percentages.) The new machine costs $23,900 and requires 52,070 in installation costs. The firm is subject to a 40% tax rate. In each of the following cases, calculate the initial investment for the replacement a. EMC sells the old machine for $12,300. b. EMC sells the old machine for $6,920 c. EMC sells the old machine for $2,900 d. EMC sells the old machine for $1,500 Calculate the initial investment at various sale prices below a. EMC sells the old machine for $12,300 (Round to the nearest dollar.) (a) Cost of new asset S Installation cost Total installed cost 5 5 Proceeds from sale of old asset Tax on sale of old asset Total after-tax proceeds $ $ Initial investment $ brary Data table - X kulator ources (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) ody Mod otion Too 259 Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 5 years 7 years 33% 20% 14 2 45% 324 3 15 19% 189 4 75 129 12 5 129 9 ON 7 9 49 9 10 11 Total 100% 100N 1001 10 years 109 18% 149 1295 9 59 7 6 0 09 View an example wer 100
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