Miller corporation is considering replacing a machine. the replacement will reduce operating expenses (that is, increase earnings before depreciation, interest, and taxes) by $ 18 comma 000 per year for each of the 5 years the new machine is expected to last. although the old machine has zero book value, it can be used for 5 more years. the depreciable value of the new machine is $ 40 comma 000. the firm will depreciate the machine under macrs using a 5-year recovery and is subject to a 40 % tax rate. estimate the incremental operating cash inflows generated by the replacement. (note: be sure to consider the depreciation in year 6.)
Answers: 3
Another question on Business
Business, 22.06.2019 15:40
Rachel died in 2014 and her executor is finalizing her estate tax return. the executor has determined that rachel’s adjusted gross estate is $10,120,000 and that her estate is entitled to a charitable deduction in the amount of $500,000. using 2014 rates, calculate the estate tax liability for rachel’s estate.
Answers: 1
Business, 22.06.2019 18:50
Suppose the government enacts a stimulus program composed of $600 billion of new government spending and $300 billion of tax cuts for an economy currently producing a gdp of $14 comma 000 billion. if all of the new spending occurs in the current year and the government expenditure multiplier is 1.5, the expenditure portion of the stimulus package will add nothing percentage points of extra growth to the economy. (round your response to two decimal places.)
Answers: 3
Business, 22.06.2019 20:00
If an investment has 35 percent more nondiversifiable risk than the market portfolio, its beta will be:
Answers: 1
Business, 22.06.2019 22:40
In a fixed-term, level-payment reverse mortgage, sometimes called a reverse annuity mortgage, or ram, a lender agrees to pay the homeowner a monthly payment, or annuity, and expects to be repaid from the homeowner’s equity when he or she sells the home or obtains other financing to pay off the ram. consider a household that owns a $150,000 home free and clear of mortgage debt. the ram lender agrees to a $100,000 ram for 10 years at 6 percent. assume payments are made annually, at the beginning of each year to the homeowner. calculate the annual payment on the ram.
Answers: 1
You know the right answer?
Miller corporation is considering replacing a machine. the replacement will reduce operating expense...
Questions
Chemistry, 27.07.2019 18:00
Mathematics, 27.07.2019 18:00
Biology, 27.07.2019 18:00
Biology, 27.07.2019 18:00
Biology, 27.07.2019 18:00
Arts, 27.07.2019 18:00
