Question: Table 11.2 Computer Disa Duplicators, Inc. has been considering several capital westment proposals for the year beginning in 2014 For each investment aropostarelevant cash own
Table 11.2 Computer Disa Duplicators, Inc. has been considering several capital westment proposals for the year beginning in 2014 For each investment aropostarelevant cash own the financial are summatured in the fallow in the case of a replacement decision, the total installed cost of the equipment will be partially offset by the sale of evig equipment. The first per rate on ordinary income and on long term capital gains. The firm's cost of capital 15 percent PM Type of capital Budgeting Decision Hapanden Helt Replacement Mutually Musly Exchanie Escrive Type of Project Independent wid. with 2 Contar news 11.500,000 120000 33000 Installation costs 30 10 115,000 MACES) 10 year 5 yeam Onginal cost of old N/A 50.000 $100,000 Purchase date) NIA 1/1/2010 1/1/2013 Sale proceeds (old) NIA 550.000 $120,000 MACRS (old NA 5 year 5 years Anmaal met prodit before depreciation & taxes (old) NIA $30,000 125.000 Annual met profits before depreciation & taken (rew $280.000 $100.000 1175.000 "Not applicable 5 year (See Table 11.21 For Proposal 3, the incremental depreciation expense for year 6 is $22.000 536,150 $15.750 $10,750 Table 11.2 Computer Disa Duplicators, Inc. has been considering several capital westment proposals for the year beginning in 2014 For each investment aropostarelevant cash own the financial are summatured in the fallow in the case of a replacement decision, the total installed cost of the equipment will be partially offset by the sale of evig equipment. The first per rate on ordinary income and on long term capital gains. The firm's cost of capital 15 percent PM Type of capital Budgeting Decision Hapanden Helt Replacement Mutually Musly Exchanie Escrive Type of Project Independent wid. with 2 Contar news 11.500,000 120000 33000 Installation costs 30 10 115,000 MACES) 10 year 5 yeam Onginal cost of old N/A 50.000 $100,000 Purchase date) NIA 1/1/2010 1/1/2013 Sale proceeds (old) NIA 550.000 $120,000 MACRS (old NA 5 year 5 years Anmaal met prodit before depreciation & taxes (old) NIA $30,000 125.000 Annual met profits before depreciation & taken (rew $280.000 $100.000 1175.000 "Not applicable 5 year (See Table 11.21 For Proposal 3, the incremental depreciation expense for year 6 is $22.000 536,150 $15.750 $10,750
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