Question: PLEASE TYPE IT OUT DO NOT WRITE IT OUT. Step by step using a financial calculator 1D) You just purchased some equipment that is classified

PLEASE TYPE IT OUT DO NOT WRITE IT OUT. Step by step using a financial calculator
1D)

You just purchased some equipment that is classified as 5-year property for MACRS. The equipment cost $183,000. What will the book value of this equipment be at the end of 4 years should you decide to resell the equipment at that point in time? Do not include the $ sign, and round it to a whole dollar.

MACRS 5-year property

Year Rate
1 20.00%
2 32.00%
3 19.20%
4 11.52%
5 11.52%
6 5.76%
1E)

The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $276,000 and cash expenses by $135,000. The initial investment will require $101,000 in fixed assets that will be depreciated using the 5-year MACRS. The company has a marginal tax rate of 34 percent. What is the project OCF in year 2? (Do not include the dollar sign ($). Round your answer to a whole dollar. (e.g., 4,132)

MACRS 5-year property
Year Rate
1 20.00%
2 32.00%
3 19.20%
4 11.52%
5 11.52%
6 5.76%
1F)

Crafter's Supply purchased some fixed assets 3 years ago at a cost of $49,000. It no longer needs these assets so it is going to sell them today for $25,000. The assets are classified as 5-year property for MACRS. What is the after-tax cash flow from this sale if the firm's tax rate is 28 percent? Do not include the dollar sign ($). Round your answer to a whole dollar. (e.g., 4,132)

MACRS 5-year property
Year Rate
1 20.00%
2 32.00%
3 19.20%
4 11.52%
5 11.52%
6 5.76%

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