What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the investment immediately

Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball…

A: Calculation of equivalent annual savings: Answer: Equivalent annual savings is $14,777.60…

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

A: "Hi, Thanks for the Question. Since you asked multiple sub parts question, we will answer first…

Q: Your company is considering a new project that will require $250,000 of new equipment at the start…

A: Depreciation expense is tax deductible and over a period of the equipment life tax benefit can be…

Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball…

A: Calculation of Annual Depreciation Tax Shield:

Q: Daily Enterprises is purchasing a $4.1 million machine. It will cost $66,000 to transport and…

A: Before investing in new asset or project, profitability is evaluated by considering future generated…

Q: United Pigpen is considering a proposal to manufacture high-protein hog feed. The project would make…

A: Net present value (NPV) is used to determine the present value of all future cash flows. Net present…

Q: what is the NPV of this project?

A: The difference between the current value of cash inflows and outflows is referred to as net present…

Q: United Pigpen is considering a proposal to manufacture high-protein hog feed. The project would…

A: Note: No intermediate rounding is done. Final answer is two decimal places.Depreciation for each of…

Q: Laurel’s Lawn Care Ltd., has a new mower line that can generate revenues of $129,000 per year.…

A: Operating cash flow is the amount received by the business by performing their core business…

Q: A corporation is considering purchasing a machine that costs $120,000 andwill save $X per year after…

A: Saving after tax can be calculated by this formula. X= saving after tax  .i = Interest rate .n=…

Q: Kelly, Inc. management is considering purchasing a new machine at a cost of $4,133,250.  They expect…

A: Net present value (NPV) is used to determine the present value of all future cash flows. Net present…

Q: United Pigpen is considering a proposal to manufacture high-protein hog feed. The project would make…

A: Computation:

Q: Ilana Industries Inc. needs a new lathe. It can buy a new high-speed lathe for $1.2 million. The…

A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…

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: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball…

A: Equivalent annual savings is $10,226.31.  Computation of equivalent annual savings: Excel spread…

Q: United Pigpen is considering a proposal to manufacture high-protein hog feed. The project would make…

A: NPV means PV of net profit generates in future from the project. It can be simply calculated by…

Q: What is the equivalent annual saving from the purchase

A: Equivalent annual savings is the cost of operating and maintaining an asset annually. It is also…

Q: What are the Equivalent annual savings?

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: The TinX Corp. is investing in a machine which will increase the quality of their product. The…

A: Net present value  (NPV) is the distinction between the current estimation of money inflows and the…

Q: The TinX Corp. is investing in a machine which will increase the quality of their product. The…

A: NPV is helpful in evaluation of any project. Positive NPV is a good indicator and increase the…

Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball…

A: Calculation of equivalent annual savings: Answer: Equivalent annual savings is $4,080.11

Q: Your firm, Agrico Products, is considering a tractor that would have a cost of $36,000, would…

A: Hence, cash inflows from operation in scenario of 5 years life is $14,880.The cash flow after tax in…

Q: What is the NPV of Pigpen’s project?

A: Cost = 1230000  Depreciation for each of the 10 years would be $123000 ($1230000/10) using…

Q: A corporation is considering purchasing a machine that will save $200,000 per year before taxes. The…

A: The net present value is the difference of the present value of cash inflows and the present value…

Q: Daily Enterprises is purchasing a $10.5million machine. It will cost $46,000 to transport and…

A: Incremental earnings refers to additional savings from incremental net revenues. Incremental…

Q: Your company is considering a new project that will require $1 million of new equipment at the start…

A: Given, Cost of new equipment is $1 million Life of equipment is 10 years Depreciated value $150,000…

Q: Camber Corporation has to decide if they can finance purchasing 10 new machines for all their…

A: b)The positive effects of corporations increasing the amount paid upfront for the capital purchases…

Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball…

A: Initial investment of the company is the sum of the cost of high pressure glueball plus after tax…

Q: The Sip & Dip Donut company is considering the acquisition of a new automatic donut dropper for…

A: Given the information: Acquisition of a new automatic donut dropper: $600,000 Life of machine: 6…

Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball…

A: Here, Purchase price of Glueball is $170,000 Selling Price of Old low-pressure glueball is $30,000…

Q: Scottech is examining an investment opportunity that will involve buying $120,000 worth of…

A: Equipment cost = 120,000 Net working capital = 10,000 Shipping cost = 5000 Installation cost = 10000…

Q: The TinX Corp. is investing in a machine which will increase the quality of their product.The…

A: Particulars Year 1 yYear 2 Year 3 Year 4 Sales 4,00,000 4,00,000 4,00,000 4,00,000 Less:-…

Q: A corporation is considering purchasing amachine that will save $150,000 per year beforetaxes. The…

A: Given: Saved amount per year = $150,000 Cost of operating = $30,000 Income tax rate = 40% Return of…

Q: Shunt Technology will spend $800,000 on a piece of equipment that will  manufacture fine wire for…

A: Net investment is the total of all expenses which are incurred to operate or run the project. it…

Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball…

A: Equivalent annual savings is the annual savings made by operating and maintaining the assets over…

Q: Laurel’s Lawn Care Ltd., has a new mower line that can generate revenues of $171,000 per year.…

A: Formulas:

Q: United Pigpen is considering a proposal to manufacture high-protein hog feed. The project would make…

A: Working Note #1 Computation of Net Cash Flow::  (Fig's in million $) Particulars Year   1 2 3…

Q: United Pigpen is considering a proposal to manufacture high-protein hog feed. The project would make…

A: NPV is the difference between the present value of cash inflows and present value of initial…

Q: United Pigpen is considering a proposal to manufacture high-protein hog feed. The project would make…

A: NPV means present value of benefits arises in future from the project. It can be simply calculated…

Q: 18

A: Initial cash outlay is the cost that was involved in the initial year during project investment.

Q: Laurel’s Lawn Care Ltd., has a new mower line that can generate revenues of $135,000 per year.…

A: Given revenues =135,000 per year Direct production costs =$45,000 fixed costs =$17,500 a year…

Q: United Pigpen is considering a proposal to manufacture high-protein hog feed. The project would make…

A: Net present value or NPV as it is called, is the difference between the present value of cash…

Q: our firm, Agrico Products, is considering a tractor that would have a cost of $37,000, would…

A: NPV of the tractor when the useful life is 5 years:

Q: llana Industries, Inc., needs a new lathe. It can buy a new high-speed lathe for $0.97 million. The…

A: NPV is method for determining the current value of the cash flows, which have been generated by the…

Q: United Pigpen is considering a proposal to manufacture high-protein hog feed. The project would make…

A: Formulas: Note: After tax salvage value refer high lighted part.