Question: please bold and explain how you got the answer A $68,000 machine with a 10-year class life was purchased 2 years ago. The machine will

please bold and explain how you got the answer

A $68,000 machine with a 10-year class life was purchased 2 years ago. The machine will now be sold for $23,000 and replaced with a new machine costing $60,000, with a 5-year class life. The new machine will not increase sales, but will decrease operating costs by $16,000 per year. Simplified straight line depreciation is employed for both machines, and the marginal corporate tax rate is 34 percent. What is the initial outlay for the project? NOTE -- ALTHOUGH THE INITIAL OUTLAY IS NEGATIVE, PLEASE ENTER YOUR ANSWER AS A POSITIVE SIGN. IN OTHER WORDS, IF YOUR ANSWER IS - 10,000, ENTER IT AS 10,000. DO NOT ENTER THE DOLLAR SIGN

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 Accounting Questions!

Question 16 1 pts A $95,000 machine with a 10-year class life was purchased 5 years ago. The machine will now be sold for $34,000 and replaced with a new machine costing $59,000, with a 5-year class...

Question 17 1 pts A $89,000 machine with a 10-year class life was purchased 2 years ago. The machine will now be sold for $32,000 and replaced with a new machine costing $62,000, with a 5-year class...

A $79,000 machine with a 10-year class life was purchased 5 years ago. The machine will now be sold for $31,000 and replaced with a new machine costing $56,000, with a 5-year class life. The new...

A $84,000 machine with a 10-year class life was purchased 5 years ago. The machine will now be sold for $29,000 and replaced with a new machine costing $57,000, with a 5 -year class life. The new...

A $86,000 machine with a 10-year class life was purchased 3 years ago. The machine will now be sold for $35,000 and replaced with a new machine costing $58,000, with a 5-year class life. The new...

A $91,000 machine with a 10-year class life was purchased 4 years ago. The machine will now be sold for $23,000 and replaced with a new machine costing $54,000, with a 5 -year class life. The new...

A $ 8 9 , 0 0 0 machine with a 1 0 - year class life was purchased 2 years ago. The machine will now be sold for $ 3 2 , 0 0 0 and replaced with a new machine costing $ 6 2 , 0 0 0 , with a 5 - year...

A $91,000 machine with a 10-year class life was purchased 4 years ago. The machine will now be sold for $23,000 and replaced with a new machine costing $54,000, with a 5 -year class life. The new...

A $76,000 machine with a 10-year class life was purchased 3 years ago. The machine will now be sold for $31,000 and replaced with a new machine costing $51,000, with a 5-year class life. The new...

A $ 7 8 , 0 0 0 machine with a 1 0 - year class life was purchased 4 years ago. The machine will now be sold for $ 3 9 , 0 0 0 and replaced with a new machine costing $ 5 2 , 0 0 0 , with a 5 - year...

During 2020, Bob itemized his deductions on his federal tax return. His itemized deductions consisted of a $8,000 charitable deduction and a $5,2000 state and local tax deduction for a total of...

(a) State and explain Ne wton's first law of motion. (b) The shortest configuration of the string joining three given points is the one shown in Fig. 1 where all the angles are 120, Explain how you...

10. LO.3 When can the formation of a partnership result in a taxable gain to one or more of the new partners?

1 . Describe the components of the conflict represented in the workplace

Compare and contrast the pedagogical and andragogical approaches to instruction. Suppose the president of a local hospital asks you to design a program to increase employee awareness of sexual...

Suppose you are the HRD manager for a large electric/utility company. The quarterly report shows a 25 percent decrease in participation in management development programs over the same quarter last...

Select a familiar problem that you have encountered in the workplace. Use the model of employee behavior presented in this chapter to seek to explain why this problem exists. Be specific.