Macrs property for tax purposes

Assignment Help Business Economics
Reference no: EM131857963

A proposed cost-saving device has an installed cost of $535,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes. The required initial net working capital investment is $38,000, the marginal tax rate is 35 percent, and the project discount rate is 12 percent. The device has an estimated Year 5 salvage value of $50,000. What level of pretax cost savings do we require for this project to be profitable?

Reference no: EM131857963

Questions Cloud

Calculate the bond yield to maturity : The face value of the bond is $1,500, and the bond is currently trading at $1,232.56. Calculate the bond's yield to maturity.
Describe an example of at least one cognitive bias : We all have developed our own theories about human behavior, Describe an example of at least one cognitive bias
Develop recruitment methods for the job opportunity : Develop a step procedure for the HR Department to use in order to maintain all applicants' records in case a discriminatory charge occurs
Determining the average return : There's a 30.0% chance of that happening. Otherwise, the stock price won't change. What's the average return?
Macrs property for tax purposes : A proposed cost-saving device has an installed cost of $535,000. The device will be used in a five-year project
What were some of your reactions to the video : Begin by watching the TED Talk by Georgette Mulheir: The Tragedy of Orphanages - What were some of your reactions to the video
Calculate the base-case cash flow and npv : Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the sales figure?
What are your current beliefs about sex and sexuality : What are your current beliefs about sex and sexuality? Does any of the material covered up until this point conflict with your beliefs?
What are the main assumptions behind abductive reasoning : A good hypothesis starts with a clear research question. What is the role of abduction in arriving at clear research questions

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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