Margaret's Bakery is considering a replacement of their baked goods display cases. The current cases were purchased three years ago at a total cost of $40,000 and are being depreciated straight line to 0 over 8 years. If Margaret's Bakery sells the display cases at the following prices what are the after-tax cash flows to Margaret's Bakery? Use 40% for the effective tax rate. A $25,000.00 B $30,000.00 C $35,000.00 D $10,000.00

Q: Spherical Manufacturing recently spent $15 million to purchase some equipment used in the…

A:

Q: [5] Garrison Corporation is considering the replacement of an old machine that is currently being…

A: Cash Flow: Cash flow is the movement of money inflow and outflow of money. A cash flow statement is…

Q: X Company has purchased a Rocket for $8,000 to use in their Pokemon capturing business. The Rocket…

A: MARR is minimum acceptable rate of return. It is the minimum return on a project, a company is…

Q: Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost…

A: Equipment's after tax net salvage value = salvage value - tax on capital gain tax on capital gain =…

Q: The used equipment can be sold today for $4.6 million, and its tax rate is 25%. What is the…

A: After Tax Salvage Value: It is computed by reducing the tax on profit on the sale of equipment from…

Q: A high-pressure reactor vessel in a pharmaceutical company was purchased for $200,000. It has a…

A: After-tax cash flow of the vessel is the net proceeds from the sale of vessel. Net proceeds means,…

Q: Johnny's lunches are considering purchasing a new energy-efficient grill. The grill will cost $49000…

A: NPV  Its usage is done for project’s profitability analysis in investment planning and in capital…

Q: Johnny’s Lunches is considering purchasing a new, energy-efficient grill. The grill will cost…

A: The capital budgeting is a technique that helps to analyze the profitability of the project.

Q: A firm with a 34% combined federal/state tax rate is considering purchasing equipment that falls in…

A: Depreciation rates from 5 years MACRS depreciation table: Year 1 Year 2 Year 3 Year 4 Year 5…

Q: Johnny’s Lunches is considering purchasing a new, energy-efficient grill. The grill will cost…

A: Formulas:

Q: , calculate the net investment for the new line.

A: Information Provided: Existing line cost = $600,000 Existing line book value = $200,000 Salvage…

Q: Johnnys lunches is considering purchasing a new, energy efficient grill. the grill will cost $34,000…

A: Net present value (NPV) is the contrast between the present value of money inflows over some…

Q: If the depreciation rates are 12% in Year 1 and 18% in Year 2, what is the depreciation tax shield…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: A cooperative has voted to purchase a box truck to move produce to their distribution center. The…

A: Present value computes the existing value of future benefits by discounting future worth with a…

Q: Johnny’s Lunches is considering purchasing a new, energy-efficient grill. The grill will cost…

A: Operating cash flow :- Operating cash flow (OCF) is a proportion of the measure of money produced by…

Q: A flatbed truck is to be purchased by HaulCo for $70,000. The truck is a Class 16 asset. HaulCo's…

A: Capital cost allowance (CCA) is one of the methods of charging depreciation expense. This method is…

Q: Suppose your firm is considering buying a van costing $95,000. What is the Undepreciated capital…

A: Proportional Tax- A proportional tax, such as a sales tax, is a sort of proportional tax. All…

Q: Vastine​ Medical, Inc., is considering replacing its existing computer​ system, which was purchased…

A: Since system was purchased two years back, depreciation for 2 years have already been charged hence…

Q: How will the tax authority’s decision affect the after-tax cost of the kiln? The tax rate is 25%,…

A: Tax shield if installation cost is currently expensed = tax*installation cost = 25%*55,000 = 13.74…

Q: A developer is deciding whether to purchase some heavy-duty landscaping equipment. The alternative…

A: Computation:

Q: Spherical Manufacturing recently spent $11 million to purchase some equipment used in the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Johnny’s Lunches is considering purchasing a new, energy-efficient grill. The grill will cost…

A: Formulas:

Q: The New Town store bought some display shelves 5 years ago for $60,000. They have been depreciating…

A: Calculation of NCF (net cash flow) is shown below: Hence, option B is correct. Formula table for…

Q: Ganyao's firm, InvesTek, manufactures silicon wafers for the high-tech industry. His firm just paid…

A: selling price = $655,000 life of project = 4 years accumulated depreciation = cost of equip×sum of…

Q: Harper Corporation recently sold a used machine for $50,000. The machine had a book value of $75,000…

A: The Loss or Gain on a machine is computed by comparing the purchase price to its Netbook value. A…

Q: An industrial organization has established an automated assembly line (for $240,000) that will…

A: a) Before Tax Cash Flow (BTCF) and After-Tax Cash Flow (ATCF) can be computed as follows: Result…

Q: Martin Tartans Inc. is considering the purchase of a new argyle sock knitting machine to replace a…

A: MACRS means the modified accelerated cost recovery system is depreciation system. MARCS is allow the…

Q: Johnny’s Lunches is considering purchasing a new, energy-efficient grill. The grill will cost…

A: Operating cash flow refers to the cash generated by the company from its normal business operations.…

Q: Suppose Hampton Corporation sells land for $8,000,000. Hampton paid $5,000,000 for the land several…

A: After-tax cash flow is the amount that is arrived after net of taxes paid on the receipt of any…

Q: Spherical Manufacturing recently spent $11 million to purchase some equipment used in the…

A: Here asked for multi sub part question we will solve for first three sub part question as per Q/A…

Q: Chicago Hospital, a taxpaying entity, estimates that it can save $30,000 a year in cash operating…

A: Net Present Value (NPR)=Present Value of Cash Inflows-Initial Cost of Machine

Q: A cooperative that makes value-added products like jams and jellies has voted to purchase a new…

A: In the given question we are provided with the data of a cooperative which is involved in the…

Q: Comey Products has decided to acquire some new equipment having a $300,000 purchase price. The…

A: in this we have to calculate cost of borrowing after tax.

Q: Talia’s Tutus bought a new sewing machine for $90,000 that will be depreciated over 5 years using…

A: Double decline method depreciation is charged double that of straight line depreciation.it give more…

Q: A cooperative that makes value-added products like jams and jellies has voted to purchase a new…

A: Depreciation: Depreciation is a charge that records and allocates the cost of using a fixed asset…

Q: Johnny's lunches is considering purchasing a new energy-efficient grill. The grill will cost $37,000…

A: The Operating Cash flow would be considered as the cash which is generated by the company after…

Q: A computer-controlled milling machine will cost Ajax Manufacturing $65,000 to purchase plus $4700 to…

A: Value of machine or asset value = Cost of machine + Installation charges Depreciation = ( Asset…

Q: Hancheta Inc. is considering the purcase of a new vehicle for P350,000. The firm's old vehicle has a…

A: Cost of new vehicle = purchase price - saes value of old vehicle = 350000-60000 = P290000

Q: As the director of a construction firm, you are considering buying a new cement mixing truck for…

A: Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Operating cost $2,300 $2,300 $2,300 $2,300 $2,300…

Q: Quick Computing installed its previous generation of computer chip manufacturing equipment 3 years…

A: The after-tax cash flow from the sale of an asset is determined by deducting the tax on the gain on…

Q: A computer-controlled milling machine will cost Ajax Manufacturing $65,000 to purchase plus $4700 to…

A: a) Assumption: It is assumed that the tax rate is 40%.

Q: Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost…

A: Cost of equipment = $ 18,200,000 Depreciated value = 75% Book value now = Cost of…

Q: a gaming room of a high-traffic video arcade wishes to determine the return on its video machine.…

A: Annual return is the amount earned during the period. It may be in form of increase in market value…

Q: Henderson Inc. has purchased a new fleet of trucks to deliver its merchandise. The trucks have a…

A: The payback period: The payback period is a capital budgeting technique that gives the amount of…

Q: Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost…

A: Net cost of Equipment = Cost of equipment - Depreciation = $13,500,000 - $13,500,000 x 65% =…

Q: Comey products has decided to acquire some new equipment having a $200,000 purchase price. The…

A: Given, Cost of new equipment = $200,000 Life = 4 years Firm borrowing rate = 7% Federal plus state…

Q: accounting rate of return on initial investment.

A: Cost of new vehicle P350,000 Less Sale value of old vehicle (P60,000) Initial investment…