22 Jul WHAT WILL THE YEAR 1 OPERATING CASH FLOW FOR THIS PROJECT BE?
Your company is considering the purchase of a new machine. The original cost of the old machine was Show more Your company is considering the purchase of a new machine. The original cost of the old machine was $75000; it is now 5 years old and it has a current market value of $35000. The old machine is being depreciated over a 10-year life toward a zero estimated salvage value on a straight-line basis resulting in a current book value of $37500 and an annual depreciation expense of $7500. The old machine can be used for 6 more years but has no market value after its depreciable life is over. Management is contemplating the purchase of a new machine whose cost is $80000 and whose estimated salvage value is zero. Expected before-tax cash savings from the new machine are $15000 a year over its full MACRS depreciable life. Depreciation is computed using MACRS over a 5-year life and the cost of capital is 15 percent. Assume a 40 percent tax rate. What will the year 1 operating cash flow for this project be? $3900 $4480 $12400 $16600 Show less
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.