Please no written by hand and no emage Question 9Pertinent information for two alternatives A and B is shown below. Ifi=10% / year and the effective income tax rate is 40%, answer thefollowing true/false questions.Alt. ABasis, $CFBT, $MACRS Recovery,YearsSalvage Value, $Useful Life, YearsO True200,00040,0005False20,0006Alt.B300,00050,0005The book value (BV) of Alt. B at the end of year 6 is greater than Salvagevalue.30,0007

Question 9 Pertinent information for two alternatives A and B is shown below. If i=10%/year and the effective income tax rate is 40%, answer the following true/false questions. Alt. A 200,000 40,000 5 Basis, $ CFBT, $ MACRS Recovery, Years Salvage Value, $ Useful Life, Years True 20,000 6 False Alt.B 300,000 50,000 5 The book value (BV) of Alt. B at the end of year 6 is greater than Salvage value. 30,000 7

Question 9 Pertinent information for two alternatives A and B is shown below. If i=10%/year and the effective income tax rate is 40%, answer the following true/false questions. Alt. A 200,000 40,000 5 Basis, $ CFBT, $ MACRS Recovery, Years Salvage Value, $ Useful Life, Years True 20,000 6 False Alt.B 300,000 50,000 5 The book value (BV) of Alt. B at the end of year 6 is greater than Salvage value. 30,000 7

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5 ts eBook Hint Print ferences Problem 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 -150,000 60,000 3 B -80,000 20,000 5 Check my w The company is in the 35% tax bracket and assumes classical straight line depreciation for alternative comparisons performed at an after-tax minimum acceptable rate of return (MARR) of 8% 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 8% 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. The annual worth analysis for system A is determined to be $ The annual worth analysis for system B is determined to…
Effective income tax rate After-tax MARR EOY BTCF $ ATCF $ (95,000.00) (95,000.00) $ $ $ -$6,625.00, $ 30,375.00 37,000.00 23,750.00 13,250.00 $ $ $ $ 237,000.00 23,750.00 $ 13,250.00 -$6,625.00, 30,375.00 $ $ -$6,625.00, $ 30,375.00 13,250.00 37,000.00 23,750.00 $ $ $ $ 437,000.00 23,750.00 13,250.00 -$6,625.00 30,375.00 1 3 50% 12% Taxable Income "Income Taxes Depreciation, For the given table, find the EVA in year 3 (please round the result to integer, e.g., if the result is $5,732.07, fill in 5732); A A/ Should this project be invested based on the annual/present/future equivalent EVA (fill in "1" if the answer is "yes", otherwise fill in "0")?
F. The College of Engineering is planning to put up its own laboratory building Two proposals being considered are: AThe construction of the building now to cost P4 000 000 B The construction of a smaller building now to cost P3 000 000 and atthe end of d years, an extension to be added to cost P2 000 00O CO3 12. By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected? a. P 150,000 b P 169 000 c.P130,000 d. none of the above CO3 13. What is the effective rate of 12% compounded monthly2 b. 10 45% 14. What is the effective rate of 12.5% compounded annually? b. 11.45% a 11.68% c 21% d. none of the above | Co1 a 12.68% 15. 1f you are investing your money which is belter for the two conditions stated above? a 12% compounded monthly c 31% d. none of the above. CO3 13% annually b. 12.5% compounded C. Compounded | d none of the above annually
First cost of equipment = $200,000Market value at the end of year 6 = $10,000MACRS depreciation is used. The equipment is a 5-year property.Incremental income-tax rate for the company = 35% Year 0 1 2 3 4 5 6 BT-CF (Before Tax Cash Flow) in $ -200K 60K 63K 66K 69K 72K 75KMarket value = 10K The Year 2 taxable income is equal to ________________. Group of answer choices -$1,000 $500 -$350 $400 $750 -$250
Marco has an asset valued $100 now. There is a 20% depreciation rate. Landing the asset is possible, at 10% rate of return. See the following Figure: Temps restant 0:25:53 Consumption later ($) 39 26 110 80 0 0 FF (store grain; 20% losses) FF (lend at 10%) Marco's IC (medium utility) 65 68 Consumption now ($) MRS MRT Marco's IC (low utility) Marco's endowment 100 Say if the following statements are correct. Veuillez choisir au moins une réponse. a. By doing nothing, Marco can consume $68 now, and $80 later O b. By lending $65, Marco can consume
Problem 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.
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? DI
Pertinent information for two alternatives A and B is shown below. If i=10% / year and the effective income tax rate is 35%, answer the following true/false questions. Basis, $ Gross Income (GI), $ Operating Expense (OE), $ Salvage Value, $ MARCS Recovery, Years True Alt. A O False 150,000 100,000 30,000 15,000 5 Alt.B 225,,000 100,000 10,000 The income tax amount at the end of year 3 of Alt. A is greater than $15,000. 22,500 5
1. Someone bought a house $400,000 in cash of which $100,000 is the value of the property. The property is rented out for 5k monthly and it cost 500 a month to maintain. He pays 38% in contributions. He plans to totally depreciate the property after 20 years, using the straight line depreciation . What is the vnet annual income from contributors? 2. A company bought a machine with an initial cost of $1million with a salvage value of 100,000 in year 10, it was sold in y5 for 1.2 million a) what are the tax implications of this sale? fully depreciated with a 100%bonus + straight line depreciations the firm that owns the machine pays corporate income taxes at crate of 40% and a capital gains taxes at a rate of 10%
In order to claim tax deductions or credits what is required? O documentation in the form of receipts O Form 1098 D & C O Simply stating it on your 1040 O Indicating it prior to your taxes on your W-4 1 2 4 EReview
taxable income on ructions, and publications, visit www.irs.gov or call RM (800-829-3676). u e-tile your tax return? Electronicaly fled returns are less kely to have ma errors resulting in notices such as this one. t's free to file your taxes electronicaly Go to www.irs.govlefile for information and instructions • You can contact us by mail at the address at the top of the first page of this notice de sure to include your Social Securiy Cumber and the tar year and form number you are writing about • Keep this notice for your records • Activity on your 2020 account may be detaying the relese of your neftund receive a notice explaining this delay • Estimated Tax Filers Note, i# you pn sta taes c Hill Graw P Type here to search 直。 000'006$ ) $750,000. eBook The total revenues of Harvey's firm in the first year were 81°F Sunny ^ 10/17/2021 3:57 PM
Complete the last four columns of the table below using an effective tax rate of 40% for an asset that has a first cost of $20,000, no salvage value, and a 3-year recovery perlod. Use MACRS depreciation. Estimates, $ Estimates, $ Estimates, $ Estimates, $ Estimates, $ Estimates. $ Тахes Estimates, $ CFAT Year GI P. OE TI 0. -20 -20 1 10 -2 1.33 O 747 O 2. 13 4 3. 17 -3 4. 10 0. -5 3.6