Business, 12.08.2019 20:20 BobreyesV20

You must evaluate a proposal to buy a new milling machine. the base price is $120,000, and shipping and installation costs would add another $15,000. the machine falls into the macrs 3-year class, and it would be sold after 3 years for $70,000. the applicable depreciation rates are 33%, 45%, 15%, and 7% as discussed in appendix 12a. the machine would require a s6,000 increase in net operating working capital (increased inventory less increased accounts payable). there would be no effect on revenues, but pretax labor costs would decline by $46,000 per year. the marginal tax rate is 35%, and the wacc is 12%. also, the firm spent $5,000 last year investigating the feasibility of using the machine. ) what is the milling machine's terminal (non-operating) cash flow at the end of year 3? a. $76,000 b. $54,440 c. $51,500 d. $54,808 cost 135000

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 01:00

How does the economy of cuba differ from the economy of north korea? in north korea, the government’s control of the economy has begun to loosen. in cuba, the government maintains a tight hold over the economy. in cuba, the government’s control of the economy has begun to loosen. in north korea, the government maintains a tight hold over the economy. in north korea, there is economic uncertainty in exchange for individual choice. in cuba, there is economic security in exchange for government control. in cuba, there is economic uncertainty in exchange for individual choice. in north korea, there is economic security in exchange for government control.\

Answers: 2

Answer

Business, 22.06.2019 01:30

Side bar toggle icon performance in last 10 qs hard easy performance in last 10 questions - there are '3' correct answers, '3' wrong answers, '0' skipped answers, '1' partially correct answers about this question question difficulty difficulty 60% 42.2% students got it correct study this topic • demonstrate an understanding of sampling distributions question number q 3.8: choose the correct estimate for the standard error using the 95% rule.

Answers: 2

Answer

Business, 22.06.2019 09:20

Which statement best explains the relationship between points a and b? a. consumption reaches its highest point, and then supply begins to fall. b. inflation reaches its highest point, and then the economy begins to expand. c. production reaches its highest point, and then the economy begins to contract. d. unemployment reaches its highest point, and then inflation begins to decrease.

Answers: 2

Answer

Business, 22.06.2019 16:00

What impact might an economic downturn have on a borrower’s fixed-rate mortgage? a. it might cause a borrower’s payments to go up. b. it might cause a borrower’s payments to go down. c. it has no impact because a fixed-rate mortgage cannot change. d. it has no impact because the economy does not affect interest rates.

Answers: 1

Answer

You know the right answer?

You must evaluate a proposal to buy a new milling machine. the base price is $120,000, and shipping...

Questions