123 Systems located in Alabama expects a 9% after-tax rate of return on an equipment investment. The state tax rate is 6%. If the company is in the 34% federal tax bracket, estimate the before-tax rate of return required. A. 11.36% B. 13.80% C. 13% D. 14.51%
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123 Systems located in Alabama expects a 9% after-tax
A. 11.36% B. 13.80% C. 13% D. 14.51%
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- First Benchmark Publishing’s gross margin is 50% of sales. The operating costs of the publishing are estimated at 15% of sales. If the company is within the 40% tax bracket, determine the percent of sales is their profit after taxes?1 1- If an after-tax rate of return = 10% is required and the Effective tax rate is 35%. What is the estimated MARR for before tax economic analysis. Select one: a. 19.4 % b. 15.4 % c. 17.4 % d. 13.4 % --------------------------------- 2- An alternative has the following cash flows: Benefits of $30,000 per year, Disbenefits of $14,000 per year, Initial cost of $300,000 and M&O costs of $10,000 per year. If the alternative has an infinite life and the interest rate is 10% per year, the B/C ratio is closest to: Select one: a. 0.32 b. 0.40 c. 0.80 d. 0.70 -------------------------- 3-At the end of the useful life of a piece of equipment, the asset accounts for $45,000 worth of production and has an operating cost of $25,000. The equipment has a salvage value of $15,000. The net cash flow in the final year of use is: Select one: a. - $8000 b. $ 25000 c. $ 15000 d. $ 35000 --------------------------Given: Before -Tax Cash Flow (BT-CF) for Kal Tech Systems in 2012 for an equipment that will be depreciated using the SL method with salvage value of $10,000. Year 0 1 2 3 4 5 BT-CF -$120,000 32,000 32,000 32,000 32,000 32,000 Market value - $36,000 What is the after-tax return if the company is in the 34% income tax bracket? The incremental tax rate is 34%. Also, it is known that the before-tax return is 16.65% Group of answer choices 9.65% 11.29% 10.16% 10.99%
- An investment of $1.000.000 will be included in the 7-year MACRS class for depreciation. It would also require an additional $150,000 to invest in inventory and would add $50,000 to accounts payable. Will generate $400000 in revenue and $150000 in cash expenses annually. The tax rate is 21 per cent. What are the incremental cash flows for years 0, 1, 7 and 8?A company produces circuit boards used to update old-fashioned computer equipment. The taxes cost the company $15,000 per month. Each circuit board is made from $6 worth of material per circuit board. The selling price per unit is p = $150 -0.02D per circuit board. يزن منذ د131 a. What is the profit per month? b. What is the maximum profit? c. At what volumes do breakeven occur? What is the company's range of profitable demand? DIProblem 17.049: Calculate the after-tax AW of two alternatives A European candy manufacturing plant manager must select a new irradiation system to ensure the safety of specific ingredients. while being economical. The two alternatives available have the following estimates: System First Cost, $ CFBT, $ per Year Life, Years A B. -100,000 -120,000 60,000 20,000 3. The company is in the 35% tax bracket and assumes classical straight line depreciation for altemative comparisons performed at an after-tax minimum acceptable rate of return (MARR) of 7% per year. A salvage value of zero is used when depreciation is calculated; however, system B can be sold after 5 years for an estimated 12% of its first cost. System A has no anticipated salvage value. Determine which is more economical using an annual worth (AW) analysis worked by hand. 7274 The annual worth analysis for system A is determined to be $ The annual worth analysis for system Bis determined to be $ System A v is selected.
- In year 0 you purchase an asset for $500,000 and in year 1 you receive a positive cash flow of s100,000 from operating the asset. Following a MACRS 7-year depreciation schedule (year 1 recovery rate of 14.29 percent) and assuming you are in a 39% tax bracket, what is your year 1 after tax cash flow (ATCF) to the nearest $50 ? a) $400,000 b) $28,550 c) $11,250 d) $88,750 e) $380,750TRUE OR FALSE? Any internal revenue tax, which has been assessed within the prescribed limitation period, may be collected by distraint or levy, or by a proceeding in court within five (5) years following the assessment period.Schedule Z-lf your filing status is Head of household The tax is: If your taxable income is: of the But not amount Over- over- over- $0 $13,850 10% $0 13,850 52,850 $1,385.00 + 12% 13,850 52,850 84,200 6,065.00 + 22% 52,850 84,200 160,700 12,962.00 + 24% 84,200 160,700 204,100 31,322.00 + 32% 160,700 204,100 510,300 45,210.00 + 35% 204,100 510,300 152,380.00 + 37% 510,300 Write the equation of the 5th row in y=mx+b form
- If you earn $130,0000, what is the marginal tax rate? Taxable income ($) $0-$50,000 Tax (%) 7% 5.84% 6% 05% 5% $50,001-$100,000 $100,001-$200,000 6% 7%Personal income tax rates in South Africa, 2015/16 Taxable income Tax Payable Rand 0-181 900 181 901-284 100 284 101-393 200 393201-550 100 550 101-701 300 701 301 and above 18% of each R1 +26% of the amount above R181 900 +31% of the amount above R284 100 +36% of the amount above R393 200 +39% of the amount above R550 100 + 41% of the amount above R701 300 R 32 742 R 59 314 R 93 135 R 149 619 R 208 587 Use the table above to: Calculate income tax of an individual if income is R170 000 Calculate income tax of an individual if income is R350 000What is the expected after-tax cash flow from selling a piece of equipment if Probst purchases the equipment today for $542,980.00, the tax rate is 34.3 percent, the equipment will be sold in 3 years for $103,000.00, and the equipment will be depreciated to $60,600.00 over 12 years using straight-line depreciation? $212,549.05 (plus or minus $10) $240,125.11 (plus or minus $10) $109,035.08 (plus or minus $10) -$41,878.05 (plus or minus $10) None of the above is within $10 of the correct answer