Determine the after-tax net present worth of this asset

Assignment Help Business Economics
Reference no: EM131159844

Specialty Maching, INC bought a new multi-turret turning center for 250000. The machine generated new revenue of 80000 per year. Operating costs for the machine averaged 10000 per year. Following IRS regulations, the machine was depreciated using the MACRS method, with a recovery period of 7 years. The center was sold for 75000 after 5 years of service. The company uses an after-teax MARR rate of 12% and is in the 35% tax bracket. Determine the after-tax net present worth of this asset over the 5-year service period.

Reference no: EM131159844

Questions Cloud

Prices and the percentage increase in production : Calculate the value of 2013 production in 2012 prices and the percentage increase in production when valued at 2012 prices.
Which one is a function of the law : Which one is a function of the law? George is selling his house. He received an offer from Katie for $200,000 but decided to counter-offer for $210,000. What does that do to the original offer
Legal services or dental services : Explain why firms that provide legal services or dental services only require little physical capital?
Legal arrangements and contractual relationships : Make a recommendation to the Oil Minister of a country which has an emerging oil & gas industry as to whether the country should adopt a Concession or PSA regime to govern the industry and explain why you have come to this conclusion.
Determine the after-tax net present worth of this asset : Specialty Maching, INC bought a new multi-turret turning center for 250000. The machine generated new revenue of 80000 per year. Operating costs for the machine averaged 10000 per year. Determine the after-tax net present worth of this asset over the..
Capital markets function : Why is it important for an economist to fully understand the way firms and capital markets function?
Discuss the advantages of closed-end country funds : Discuss the advantages and disadvantages of closed-end country funds (CECFs) relative to American depository receipts (ADRs) as a means of international diversification.
How does scarcity of resources apply to economic decisions : What are economic resources, and how does scarcity of resources apply to economic decisions? Think of a business firm you recently visited (such as Walmart, Home Depot, Red Lobster, Barnes & Noble, McDonald's, etc.). What motivated the producers of e..
Supply and demand of workers in terms of equilibrium : Can someone explain how an increase in immigration can affect supply and demand of workers in terms of equilibrium and wage and quantity? Thanks.

Reviews

Write a Review

Business Economics Questions & Answers

  Which is not a primary cause of economic growth

Economies grow for a variety of reasons. Which of the following is not a primary cause of economic growth?

  Express the production function in per worker terms

Express the production function in per worker terms. Thus, y = f (k) where y = Y/L and k=K/L. Suppose that both countries start off with a capital stock per worker of 2 (i.e. k = 2). What are the levels of income per worker and consumption per worker..

  Assume that the labor demand equation for fictional country

Assume that the labor demand equation for a fictional country is Ld = 90 – 2w, where w is the wage per hour worked. Assume also that the labor supply equation for that country is Ls = 0.5(w). If the supply of workers increased, the number of unemploy..

  Upstream supplier firms or with downstream customer firms

The presence or even the threat of prize freezes (i.e. price controls) may induce firms to integrate vertically (to merge with “upstream” supplier firms or with “downstream” customer firms). Explain why.

  Indifference curve is tangent to his budget constraint

Romans utility function os U(x,y)=6xy. The prices of goods x and y are $12 and $15. The indifference curve is tangent to his budget constraint, where he is consuming 20 units of good x. How many units of good y must he be consuming?

  Calculate the optimal output produced by each firm

Calculate how large A would have to be so that in the new LRCE, the number of firms is twice what it was in the initial equilibrium.

  Example of rules of the game or economic institutions

Systems and equipment for communication, transportation, and sanitation make up. In developing countries, on average, nearly ___ of the labor force is employed in the agricultural sector; compared to 3% in industrial market economies. Which is NOT an..

  Q1 a community wants to construct a hazardous waste

q1. a community wants to construct a hazardous waste incinerator for household hazardous waste. the cost of the

  Cobb-douglass production function

Consider an economy with the following Cobb-Douglass production function: Derive the equation describing labor demand in this economy as a function of the real wage and capital. The economy has 27,000 units of capital and a labor force of 1000 worker..

  Debate between international dependence-neoclassical counter

Why is the debate between the international dependence and the neoclassical counter-revolution schools referred to as “finger pointing?”

  Individuals who re-sell tickets at the event

Suppose you bought a concert ticket from Ticketmaster for $50, but when you got to the concert scalpers (individuals who re-sell tickets at the event) were selling tickets in the same seating area as yours for $25. What is probably true?

  Elucidate why chrysler decision might have

Elucidate why Chrysler's decision might have been prompted by movements in its wage costs or capital costs, or both. Why would Chrysler have instituted this production change for its most popular.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd