Question: need help with last 3 An automaker is considering installing a three-dimensional (3-D) computerized styling system at a cost of $400,000 (including hardware and software).




An automaker is considering installing a three-dimensional (3-D) computerized styling system at a cost of $400,000 (including hardware and software). With the 3-D computer modeling system, designers will have the ability to view their design from many angles and to fully account for the space required for the engine and passengers. The digital information used to create the computer model can be revised in consultation with engineers, and the data can be used to run milling machines that make physical models quickly and precisely. The automaker expects to decrease turnaround time by 28% for new automobile models (from configuration to final design) if the modeling system is installed. This would result in an expected additional revenue of $280,000 per year. The training and operating and maintenance cost for the new system is expected to be $120,000 per year. Additionally, there are material costs of $10,000 per year that will be required to maintain the system. The system has a five-year useful life and can be depreciated as a five-year MACRS class. The system will have an estimated salvage value of $5,00d at the end of five years. The automaker's marginal tax rate is 40%. Use this information to answer the following questions. (this question is based on 10-10 from textbook, "question is not the same) Question a: What are the expenses of this project? Select all that apply Investment cost of $400,000 Depreciation Materials costs of $10,000 Salvage value $5,000 Savings of $320,000 Training and maintenance cost of $120,000 D Question 2 he 3 pts Question b: What is the cost basis of the new system? Enter the nearest integer. 530,000 Question : What is the depreciation in year 3? Enter the nearest integer. 76.800 Question 4 3 pts Question d: What be the depreciation in year 5? Enter the nearest integer. 46,080 Question e: What is the taxable income in year 2? Enter the nearest integer. 32,000 D Question 6 3 pts Question : What Would the income taxes be in year 2? Enter the nearest integer. Question : What is the net income in year 2? Enter the nearest integer. D Question 8 3 pts Question : What is the book value at the end of year 5? Enter the nearest integer
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