Go Logistics, a small logistics company, is planning to invest in a fleet of delivery vehicles for $760,000; each vehicle is considered MACRS 5-year property. Go Logistics estimates that their fleet of delivery vehicles will generate an additional revenue of $165,000 per year; they plan to operate their fleet for 4 years. After 4 years, the delivery fleet would have a salvage value of $110,000. The tax rate is 26%, the delivery vehicles are eligible for a Section 179 deduction, and Go Logistics uses an after-tax MARR of 9%. Compute the PW and determine whether the business should invest in the delivery vehicles

Q: A car industry invested $20,000 in cars with a 3-year useful life. The cars will have no salvage…

A: Net Present Worth, or NPW, refers to the difference between present worth of cash inflows and the…

Q: An asset with a first cost of $9000 is depreciated using 5-year MACRS recovery. The CFBT is…

A: The cash flow after tax can be calculated using spreadsheet as follows:

Q: 3. The plant manager of a fiber optics company knows that the remaining capital investment in…

A: Since you posted multiple subpart questions, we will provide the answer for first three subpart…

Q: The certain publisher purchased a machine for P 30,000, used it for 5 years and then sold it for P…

A: Sinking fund method of depreciation.  The arrangement is created in this technique such that a…

Q: Two alternative machines (A and B) have been suggested each costing 4,50,000. Cash Question. 2. The…

A: Given: Cost of machine=$450000 Return on capital=10%

Q: The associated estimates are summarized below: $75,000 nnual receipts nnual expenses $45,000 seful…

A: *Answer:

Q: factory has decided to purchase some new equipment for P600, 000. The equipment will be kept for 10…

A: given cost of equipment = 600000 P time = 10 years salvage value = 45000 P Adjusted value = cost –…

Q: 1. A machine costs P7,000.00, last 8 years and has a salvage value at the end of life of P350.00.…

A: Disclaimer:- as you posted multipart  questions we are supposed to solve the first 3 questions only…

Q: Evaluate and select the best purchase of the following vehicles using straight line depreciation, a…

A: * SOLUTION :-

Q: New equipment costing $30,000 has a 5-year life and no salvage value. Benefits are expected to be…

A:

Q: Problem 17.051: Calculate the after-tax PW of two alternatives Perform a present worth (PW)-based…

A: Present-worth (PW) based evaluation is one of the ways for evaluating a group of options using…

Q: project is estimated to cost P100, 000, last ars and have a P10, 000 salvage value. The nual gross…

A: Comparable yearly expense is the annual expense of buying and keeping not entirely settled by…

Q: An organization completes the purchase of new asset at a cost of $25,000. It has an yearly operating…

A: To find the annual savings which would provided rate of return of 10% , we will find the present…

Q: An aute generate $85,000 of savings for each of the next 6 years. At the end of the 6 years, the…

A: To compute the PW & the IRR we take following steps : # Compute Cash flow which requires…

Q: An equipment cost P 700 has a life of 8 years and a salvage value of X after 8 years.  The book…

A: Depreciation is the amount loss of fixed assets over period of time . There are various method to…

Q: Perform an after-tax cash flow analysis on the following data on the replacement of an old equipment…

A: Given information , Initial Investment: 500,000Useful life: 5 yearsTerminal Value: 50,000Annual…

Q: XYZ company has been presented with an opportunity to invest in a project for 10 years. If…

A: The IRR of the Project is 6.89 % With Minimum required return of 10 % and the given project IRR of…

Q: A business invests $5000 and initially plans to achieve annual revenue of $1100/yr with $200/yr…

A: I = $5000 Annual revenue = 1100 Expenses = 200 / year

Q: Ocean Tide Industries is planning to introduce a new product with a projected life of eigh years.…

A: Answers. (4) OCF = Earnings after tax + Depreciation   The calculation of OCF for year 1 to year 8…

Q: Your firm is planning to install a new capping machine at the apple juice factory. This machine is…

A: Annual worth or AW is referred to as the easy way of understanding the annual amount, for instance,…

Q: A small print shop is investing in new printing equipment that will cost $30,000. They estimate that…

A: Given that :- New printing equipment cost $30,000 Additional revenues for every of the next 6 years…

Q: 19) In a replacement decision analysis, a Defender (existing equipment) is replaced for a Challenger…

A: [19] Defender is the existing one whereas challenger is the new one. New will come into work only…

Q: A small print shop is investing in new printing equipment that will cost $30,000. They estimate that…

A: Answer; Given that :-       A small print shop is investing in new printing equipment that…

Q: The first cost of a 3D printer (computer equipment) is $26,000 with operating costs of $0.27 per…

A: Year Particular Cash Outflow PV @14% Pv cost 0 First cost                      26,000.00 1.000000…

Q: SHOW ALL SOLUTIONS. 1. An investment of P60,000.00 can be made in depreciable assets that will…

A:

Q: A firm must decide between two designs. Their effective income tax rate is 15%, and MACRS…

A: The annual worth or AW method refers to the value for an alternative, comprising of two prime…

Q: A firm must decide between two designs. Their effective income tax rate is 33%, and MACRS…

A: Given information Two design Design A: Initial investment =$940000 Net revenue=$260000 Salvage…

Q: Consider the proposed capital investment in an engineering project. • Proposed capital investment:…

A: Formulation  Results

Q: The Shell Corp. owns a piece of petroleum drilling equipment that costs $200,000 and will be…

A: Given:  Cost of Machinery = $200,000 Depreciation rate (DDB) B=$200,000 Time (N)=10 years S = $0 Tax…

Q: 1. A firm must decide between two silicon layer chip designs from Intel. Their effective income tax…

A:

Q: 1. An equipment costs P 10,000 with a salvage value of P 500 at the end of 10 years. Calculate the…

A: Given  Initial cost of the equipment is P 10,000 Salvage value =P 500 at the end of 10 years

Q: A company is evaluating the addition of equipment to its present operations. They need to purchase…

A: Current market value = $160,000 Gross revenue = $30,000 Maintenance cost = $5,000 Life = 4Years…

Q: During its current tax year (year one), a pharmaceutical company purchased a mixing tank that had a…

A: Calculate Cost Basis:-  The cost basis of tank is calculated as below: Cost Basis of Tank = Cash…

Q: A project capitalized for ₱45,000 invested in depreciable assets will earn a uniform, annual income…

A:

Q: project capitalized for ₱42,000 invested in depreciable assets will earn a uniform, annual income of…

A: Capitalized Cost 42000   Annual Income 20333   Annual Cost 9000   Tax and insurance 4% i.e.…

Q: Six years ago, a company purchased $30,000 of equipment. The equipment has just been sold for $5000.…

A: Present Worth is defined as the current value of the future cashflows  It can be calculated as:…

Q: A certain newly created company installed a 10,000kW electric generating plant at a cost of P430 per…

A: Given  Workings:- Cost of asset  = 10,000 KW * 430 P = P43,00,000   Life of asset = 15years Salvage…

Q: John constructed a commercial building amounting to $1.59 Million. Permits and taxes charges…

A: Given First cost FC= $1590000 Life of the equipment = 50 years  Salvage value of equipment after 50…

Q: A new machine costs $899,090 and falls in a 29.50% CCA class.  The machine will have zero value…

A: Equivalent annual cost or EAC is defined as the annual cost of owning, operations and maintenance of…

Q: A corporate expects to receive $36,144 each year for 15 years if a particular project is undertaken.…

A: The difference between the present value of cash inflows and the present value of cash outflows over…

Q: Outdoor Sports is considering adding a putt putt golf course to its facility. The course would cost…

A:

Q: The consolidated oil company must install antipollution equipment in a new refinery to meet federal…

A: A Rate of coming back (ROR) is that the gain or loss of associate degree investment over a…

Q: A firm must decide between two silicon layer chip designs from Intel. Their effective income tax…

A: given data                                                          Design A…

Q: 3. A linking machine is purchased for #20,000. It is estimated to have a useful life of 10 years…

A: Sum-of-the- years-digit Method (SYD). This technique takes the asset's expected life and adds…

Q: A firm can purchase a centrifugal separator​ (5-year MACRS​ property) for ​$17,000. The estimated…

A: Uniform after tax annual benefits should be greater than or at least equal to the annual uniform…