What will the depreciation associated with the machine

Assignment Help Finance Basics
Reference no: EM132200150

Apex Manufacturing just received a huge order that the firm needs to fulfill within the next year. It is faced with the decision of wether to purchase new machinery costing $500,000, installment cost is $75,000, and shipping $50,000. The machine will be used for four years and then sells at $100,000. (Use MACRS 5 Year class)

(A) What will the depreciation associated with the machine be each year Apex has it?

(B) Marginal tax rate is 40 percent, what after-tax net cash flow will Apex receive when the machine is sold?

Reference no: EM132200150

Questions Cloud

Draw the new curves after the shock occured : On the same diagram, draw the new curves after the shock occured at period t0. Label the new curves with a prime superscript on the top right corner.
Calculate the npv and use the npv technique : Calculate the NPV and use the NPV technique to evaluate this project; should it be accepted or rejected and why?
What is the quality spread differential : Explain in words: What is the quality spread differential? Use an example to illustrate.
Explain why the distinction is important to economists : Define and distinguish between real and nominal GDP. Explain why the distinction is important to economists. The response must be typed.
What will the depreciation associated with the machine : (A) What will the depreciation associated with the machine be each year Apex has it?
What is meant by the terminology : What is meant by the terminology that an option is in, at, or out of the money?
Why do we say there is no unemployment : Why do we say there is no unemployment in our standard frictionless model? And why do we HAVE unemployment in a labor market with frictions?
What is the no-arbitrage us dollar price of one adr : On July 23, 2007 the ($/euro) spot exchange rate was S($/euro)=1.32. At this exchange rate, what is the no-arbitrage US dollar price of one ADR?
How much is the depreciation at the end of year 1 : The new machine price is $350,000 and shipping cost is 50,000. Using the MACRS 5 year class- How much is the depreciation at the end of year 1?

Reviews

Write a Review

Finance Basics Questions & Answers

  Individual and organizational responsibility for employees

1. What is the proper balance between individual and organizational responsibility for employees' careers?

  Determine the engineering economy symbols

A pharmaceutic engineer started a small-scale drug processing company for the production of Aloe Vera extract with an initial investment of $750,000.

  What is the future value at an interest rate

Havana, Inc., has identified an investment project with the following cash flows. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4? What is the future value at an interest rate of 11 percent? At 24 percent?

  What were the names of the original five dhs directorates

What did the two September 11 - related after-action reports say about the capabilities of first responders?

  The variance and standard deviation of an

the variance and standard deviation of an investmenta. increase as the riskiness of the investment increase.b. increase

  Conducting marketing research in global markets

Provide examples of companies that failed to conduct adequate research and failed in in their attempt to compete successfully in foreign markets.

  Decide upon an initiative you want to implement that would

decide upon an initiative you want to implement that would increase sales over the next five years for example market

  Operating profit margin is a better measure of financial

operating profit margin is a better measure of financial performance becauseaoperations are the only thing that

  What are typical maturities denominations and interest pay

What are typical maturities, denominations, and interest payments of a corporate bond? What mechanisms protect bondholders?

  Social security taxes during this period

Social Security taxes during this period?

  Semiannual loan payments

If her bank charges interest at a rate of 4.4 percent per half-year, how much principal is in the 22nd payment?

  Discuss financial ratio analysis

Find two articles that discuss financial ratio analysis. Identify two advantages and two disadvantages to using ratios in financial analysis. Be sure to cite your sources using APA format.

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