Question: XO Question 12 will have a valu MACRS table fo MSC Machining is reviewing a four year project to cut production costs. The purchase of
XO Question 12 will have a valu MACRS table fo MSC Machining is reviewing a four year project to cut production costs. The purchase of a new machine at $400,000 is estimated to result in $155,000 in annual pre-tax cost savings. The machine falls in the MACRS five-year class and will have a market value of $105,000 at the end of the project. An initial investment of $55,000 is also required in spare parts inventory. If the company's tax rate is 21%, cell A will Cell B will have a value of [Select] have a value of Y.cell C Yand cell D will have a value of [Select] year depreciation % 1 2 32 4 LO 5 6 OCF 20 32 19.2 11.52 11.52 5.76 Q CHANGE IN NWC [Select] [Select] 149,330 139,250 55,000 -455,000 YR O V YR 1 YR 2 A YR 3 PHILIPS 12 pts YR 4 B Y

MSC Machining is reviewing a four yearproject to cut production costs. The purchase of a new machine at $400,000 is estimated to result in $155,000 in annual pre-tax cost savings. The machine falls in the MACRS five-year class and will have a market value of $105,000 at the end of the project. An initial investment of $55,000 is also required in spare parts inventory. If the company's tax rate is 21%, cell A will have a value of . Cell B will have a value of cell C will have a valt and cell D will have a value of MACRS table f x(1)10 will have a value of and cell D will have a value of MACRS table for 5 -yr class
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