What is the after-tax value of the machine

Assignment Help Business Economics
Reference no: EM131109457

A corporation purchased a machine for $60,000 five years ago. It had an estimated life of 10 years and an estimated salvage value of $9,000. The current BV of this machine is $34,500. If the current MV of the machine is $40,500 and the effective income tax rate is 29%, what is the after-tax value of the machine? Use the outsider viewpoint.

ote: Focus of gain (loss) on selling the asset (refer chapter 7) and consider this amount in the MV of the machine.

Reference no: EM131109457

Questions Cloud

The demand equation for baseball bats : Currently, the demand equation for baseball bats is Q=300-5P. the current price is $15 per bat. is this the best price to charge in order to maximize revenues? If not, indicate what price you should charge and quantity that you should produce in orde..
Estimated using the multiple linear regression model : Discuss which economic theories or relationships you have studied up until now (not just in this class – in all your economics classes) that could be estimated using the multiple linear regression model. Explain your rationale.
What is a black swan event : What is a Black Swan event? Does it ever make sense a priori to devote resources to preventing a black swan event? Explain. Does it ever make sense a priori to devote resources to containing a black swan event should one occur? Explain.
How much is the defender present worth : Machine A was purchased last year for $20,000 and had an estimated MV of $2,000 at the end of its six-year life. Annual operating costs are $2,000. The machine will perform satisfactorily over the next five years. A salesman for another company is of..
What is the after-tax value of the machine : A corporation purchased a machine for $60,000 five years ago. It had an estimated life of 10 years and an estimated salvage value of $9,000. The current BV of this machine is $34,500. If the current MV of the machine is $40,500 and the effective inco..
Salesman for another company is offering replacement : Machine A was purchased last year for $20,000 and had an estimated MV of $2,000 at the end of its six-year life. Annual operating costs are $2,000. The machine will perform satisfactorily over the next five years. A salesman for another company is of..
According to new growth theory : According to new growth theory, Knowledge capital is nonrival in the sense that. Which of the following government provisions would help increase the accumulation of knowledge capital? By offering more generous unemployment insurance programs, Europe..
What are the fixed cost and variable cost equation : Assume that the production of scissors is represented by q = 6*(K*L)1/2 . In the SR, K is fixed at 144. The rental rate (v) is 25, and the wage rate (w) is 10. a. (4 pts) What is the STC function in terms of q? b. (2 pts) Using your equation in part ..
How can the firm maximize output or minimise costs : Suppose that the marginal product of the last worker employed by a firm is 40 units of output per day and the daily wage that the firm must pay is $20, while the marginal product of the last machine rented by the firm is 120 units of output per day a..

Reviews

Write a Review

 

Business Economics Questions & Answers

  What are the dynamics for regional integration

What is regionalism? Use European Union as an example to illustrate the major steps toward regional integration. What major features can you identify for regional integration in Europe, North America and East Asia? What are the dynamics for regional ..

  What is your certainty equivalent for these two projects

If you were the angel investor, what is your certainty equivalent for these two projects? Are you risk-averse, risk-neutral, or risk-lover?

  Contradiction by using the relevant budget equation

Consider a consumer who spends all of her income on two goods. Prove that it is impossible for both goods to be inferior for this individual. (Suppose the assertion is not true. Write algebraically what this means, and derive a contradiction by using..

  Illustrate what would production at a point outside

Illustrate what would production at a point outside the production possibilities curve indicate? What must occur before the economy can attain such a level of production.

  What is regression predicted earnings

What is regression's predicted earnings for a 25 year old worker. A 45 year old worker.

  Most heavily taxed items

Why are cigarettes and alcohol the most heavily taxed items in the US? Now, if the government increases the price of these items by 10%, how does this affect the stores that sell them? Provide a detailed response.

  Illustrate what is the probability of seat belt usage

Out of the people who wear seat belts, northeast has 148. Out of the people who don't wear seat belts, northeast has 52. A total of 858 wear seatbelts in the United States. Illustrate what is the probability of seat belt usage by region of the cou..

  Experiencing decrease in home prices and consumer wealth

During the recession of 2007-2009, the U.S. economy was experiencing a decrease in home prices and consumer wealth, a credit crisis in the financial markets, and declining consumer and business confidence. What components of aggregate demand were aff..

  More effective at increasing output per capita

Which government policy would be more effective at increasing output per capita (if such a policy was available):

  Define the annual worth of this investment

A car is financed as follows: $2,000 as a down-payment plus equal monthly payments at 8% annual interest rate compounded monthly for 3 years. Original price of the car was $14,500. It is expected that maintence costs are going to be $400 in the first..

  Determine whether there was a recession

Consider an economy where 1999 is the base year used for all calculations of price indices and constant-price aggregates. The price of the average good counted in GDP was 5% higher in 1997 than in 1999 and real GDP in 1997 was $64,800. In 1998 the ra..

  Q1 bob consumes two commodities x and y say chocolate and

q1. bob consumes two commodities x and y say chocolate and classical music. more y never hurts but in order to enjoy y

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