What is the after-tax present worth of a chip placer if it costs $75,000 and saves $23,000 per year? The after tax interest is 10%. Assume the device will be sold for $7500 salvage value at the end of its 6 year life. Assume the chip placer falls under CCA Class 8. The corporate income tax rate is 54%.
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- A piece of machinery purchased at a cost of$92,000 has an estimated salvage value of $12,000and an estimated useful life of five years. It wasplaced in service on May 1st of the current fiscalyear, which ends on December 31st. The asset fallsinto a seven-year MACRS property category. Determine the depreciation amounts over the useful life.A set of Wire Bond machine costs $500,000. This amount includes freight and installation charges estimated at 10% of the original price. If the machine shall be depreciated over a period of 10 years with a salvage value of $5,000, what is the annual depreciation charge and the book value at the end of 7 years?Show manual solutions and depreciation schedule/table. An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the end of the period. Compute the depreciation charge and its book value after 10 years using declining balance method.Ans. BV = P60,832.80 d = P9,234.93
- An specialized machine has an initial cost of P50,000 and a salvage value of P10,000 after 10 years. What is the book value after five years using straight line depreciation? A. P35,000 B. P30,000 C. P25,000 D. P15,500A corporate expects to receive $36,144 each year for 15 years if a particular project is undertaken. There will be an initial investment of $100,705. The expenses associated with the project are expected to be $7,740 per year. Assume straight-line depreciation, a 15-year useful life, and no salvage value. Use a combined state and federal 48% marginal tax rate, MARR of 8%, determine the project's after-tax net present worth.John bought a machine set for P90,000. Other expenses including installation amounted to P10,000. The machine set is to have a life of 17 years with a salvage value of P5,000. Determine the depreciation charge during the 13th year and the book value at the end of 13 years bya.) Declining balance methodb.) Double declining balance methodc.) Sinking fund method at 12%d.) Sum-of-the-years-digit method
- 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%A certain equipment costs P 7,000 and a salvage value of P 350 at the end of its economic life. Using SYD method of depreciation, the book value at the end of 4 years is P 2,197.22. Compute the economic life of the equipment, in years.An equipment cost P 700 has a life of 8 years and a salvage value of X after 8 years. The book value at the 4th year using SYD method is P 2,197.22. Compute the depreciation in the first year by SYD method. Select one: a. P 1,286 b. P 1,220 c. P 1,478 d. P 1,322*please do not use excel
- Machine X costs $248,751 with annual operating and maintenance costs of $9,980. Machine Y costs $264,500 with annual operating and maintenance costs of $5120. Both machines are Class 43 (CCA=30%). The company needs the machines for 11 years, after which machine X can be sold for $12,257 and machine Y can be sold for $13,033. The company’s MARR is 10%, and its tax rate is 27%. Do an after-tax analysis to determine which machine should be purchased.A miniature building company named Tiny Touches purchased a 3D printer which costs $250,000. It is expected to last for 15 years and at the end of its useful life, it will cost $25,005 Find the annual depreciation if it’s depreciation using sinking fund method at 7%An industrial plant bought a generator set for P120, 000. Other expenses including installation amounted to P10, 000. The generator is set to have a life of 15 years with a salvage value at the end of life of P8, 000. What is the depreciation charge during the 12th year by SYD method? pls show manual solution and pick the right answer thank you a. P 3, 105 b. P2,620 c. P4,067 d. P 4,784