What is the after-tax equivalent uniform annual cost

Assignment Help Business Economics
Reference no: EM13771262

Your company has just signed a three-year nonrenewable contract with the city of New Orleans for earthmoving work. You are investigating the purchase of heavy construction equipment for this job. The equipment costs $200,000 and qualifies for five-year MACRS depreciation. At the end of the three-year contract, you expect to be able to sell the equipment for $70,000. If the projected operating expense for the equipment is $65,000 per year, what is the after-tax equivalent uniform annual cost (EUAC) of owning and operating this equipment? The effective income tax rate is 40%, and the after-tax <ARR is 12% per year.

Reference no: EM13771262

Questions Cloud

Supply and demand for loanable funds : The following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply of loanable funds, and the downward-sloping blue line represents the demand for loanable funds.
Safety-accidents and investigations : In the Business Source Complete database of the University Online Library, locate and read the article, "Safety, Accidents, and Investigations: Be Prepared for the Unexpected," by Robert A. Battles.
Calculate the multiplier and the change in gdp : Suppose an economy has no imports and no income taxes. Its marginal propensity to consume (MPC) is $0.75, and its real GDP level is $250 billion. Businesses increase their investment by $10 billion. Calculate the multiplier and the change in GDP.
Us immigration and customs enforcement agency : In November 2011, the US Immigration and Customs Enforcement agency seized 150 Web sites accused of selling counterfeit merchandise. Attorney General Eric Holder warned that counterfeit merchandise not only affects American innovation but can also..
What is the after-tax equivalent uniform annual cost : Your company has just signed a three-year nonrenewable contract with the city of New Orleans for earthmoving work. You are investigating the purchase of heavy construction equipment for this job. The equipment costs $200,000 and qualifies for five-ye..
Describe the social and psychological factors : How you think you became the person you are today. Describe the social and/or psychological factors you can point to that help support your explanation as well as any genetic factors you believe affect your unique personality.
How are the classical chorus functions treated : The play is older than Anderson. Why is this still relevant? Is there a chorus in this? How are the classical chorus functions treated?
Research and find the latest 10k for amazon.com. : Research and find the latest 10K for Amazon.com. How would you primarily classify the company? Is it a service, a merchandiser, or a manufacturing organization? Explain, giving reasons.
Managing content with different sized organizations : Are the requirements different for managing content with different sized organizations? For example, would it be more difficult for a multinational company compared to a local company.

Reviews

Write a Review

Business Economics Questions & Answers

  Find out and draw a graph of equilibrium under free trade

Now allow Foreign and Home to trade with each other, at zero transportation cost. Find out and draw a graph of equilibrium under free trade.

  Calculate the percentage increase in real gdp per person

Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to calculate the percentage increase in real GDP per person from 1987 to 2005.

  What should be the incentive rate per hour

If a company wants an employee about 14 dollars per hour to produce 60 units per hour plus it provide a base salary of 7 dollars per hour, what should be the incentive rate per hour?

  Secondhand smoke globally kills more than

If the average adult produces $90,000 of output per year, how much output is lost as a result of adult deaths from secondhand smoke, according to the News on page 74?

  Q1 compute the elasticity of demand for fords automobiles

q1. compute the elasticity of demand for fords automobiles or choose a specific make model and interpret what the

  Calculate the cost of equity for the two firms

What does the difference in the CCCs tell us about the riskiness of the two firms? Why is that the case? If the expected industry return is 8%, will both firms stay in the industry? Calculate the cost of equity for the two firms?

  What are the gift tax consequences

Grace treated an irrevocable trust to pay the income to Sam(her spouse) for life, and at his death to distribute the trust property to their children, Ellen and Frank. Ellen and Frank are Co-Trustees. Sam, Ellen and Frank agree that Ellen and Frank w..

  Can you say conclusively whether the firm will use more

In which direction will the scale effect change the firm’s employment of labor? c. Can you say conclusively whether the firm will use more or less labor? More or less capital?

  Equations representing demand

The equations representing demand as well as, inverse demand as well as, supply as well as inverse supply are as follows.

  Q1 assume that cookie producers create a positive

q1. assume that cookie producers create a positive externality equal to 2 per dozen. what is the relationship between

  Q1 think about the electoral competition model with three

q1. think about the electoral competition model with three candidates. extend the model to incorporate that candidates

  Explain how to encourage people to spend more to increase

Explain how to encourage people to spend more to increase aggregate demand and create employment possibilities.

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