Question: Please help me with this problem! Question: Use the data from Problem 31 to not only calculate the depreciation schedule four ways, but also find

Please help me with this problem!

Question: Use the data from Problem 31 to not only calculate the depreciation schedule four ways, but also find the After Tax Cash Flows (ATCF) and calculate the Net Present Value (NPV) and Rate of Return (IRR) for each different method. The MARR is 15% and the corporate tax rate is shown on page 430 of the text (and on the ATCF Example video). The spreadsheet is organized to help you, and the BTCF is $5000 (note: an earlier version of the spreadsheet used a BTCF of $4000 and could be floating around, so check that column after you download the template). Note that if you depreciate down below the book value you have to "recapture" the untaxed portion of the salvage value in the last year and pay taxes on it.

I just need a, c, and d done. Thank you!

Please help me with this problem! Question: Use the data from Problem

31 to not only calculate the depreciation schedule four ways, but also

ou use or calc! 11-31 A small used delivery van can be purchased for $20,000. At the end of its useful life (8 years), the van can be sold for $3000. Determine the PW of the depreciation schedule based on 15% interest using: (a) Straight-line depreciation (6) Double declining balance depreciation (c) 100% bonus depreciation (d) MACRS depreciation Problem 11-31a Year Tax ATCE Straight The Book Value Taxable come 0 1 2 3 4 5 6 7 8 BTCF BTCF Purchase benefits & salvage expenses -20000 5000 5000 5000 5000 50.00 5000 5000 3000 5000 NPW RR Problem 11-31c Year Tax ATCE 0 1 2 3 4 5 6 7 8 BTCF BTCF 100% Boms Book Valme Taxable Purchase benefits become & salvage expenses -200.00 50.00 5000 5000 50:00 5000 5000 5000 30:00 5000 NPW RR Problem 11-31d Year Tax ATCE 0 1 2 3 4 5 6 7 8 BTCF BTCF MACRS (5 Book Value Taxable Purchase benefits year class) become & salvage expenses -20000 5000 5000 5000 5000 5000 50.00 5000 3000 50:00 NPW RR ou use or calc! 11-31 A small used delivery van can be purchased for $20,000. At the end of its useful life (8 years), the van can be sold for $3000. Determine the PW of the depreciation schedule based on 15% interest using: (a) Straight-line depreciation (6) Double declining balance depreciation (c) 100% bonus depreciation (d) MACRS depreciation Problem 11-31a Year Tax ATCE Straight The Book Value Taxable come 0 1 2 3 4 5 6 7 8 BTCF BTCF Purchase benefits & salvage expenses -20000 5000 5000 5000 5000 50.00 5000 5000 3000 5000 NPW RR Problem 11-31c Year Tax ATCE 0 1 2 3 4 5 6 7 8 BTCF BTCF 100% Boms Book Valme Taxable Purchase benefits become & salvage expenses -200.00 50.00 5000 5000 50:00 5000 5000 5000 30:00 5000 NPW RR Problem 11-31d Year Tax ATCE 0 1 2 3 4 5 6 7 8 BTCF BTCF MACRS (5 Book Value Taxable Purchase benefits year class) become & salvage expenses -20000 5000 5000 5000 5000 5000 50.00 5000 3000 50:00 NPW RR

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!