Business, 14.04.2020 19:28 1xXJOKERXx3

Use the after-tax IRR method to evaluate the following three alternatives using 60% bonus depreciation in Year 0 and 3-year MACRS, and offer a recommendation. The after-tax MARR is 25%, the project life is 5 years, and the firm has a combined incremental tax rate of 31%.

Alternative First Cost Annual Costs Salvage Value
A $14000 $2500 $5000
B 18000 1000 10000
C 10000 5000 0

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 17:30

The purchasing agent for a company that assembles and sells air-conditioning equipment in a latin american country noted that the cost of compressors has increased significantly each time they have been reordered. the company uses an eoq model to determine order size. what are the implications of this price escalation with respect to order size? what factors other than price must be taken into consideration?

Answers: 1

Answer

Business, 22.06.2019 19:00

Describe how to write a main idea expressed as a bottom-line statement

Answers: 3

Answer

Business, 22.06.2019 21:00

Dozier company produced and sold 1,000 units during its first month of operations. it reported the following costs and expenses for the month: direct materials $ 69,000 direct labor $ 35,000 variable manufacturing overhead $ 15,000 fixed manufacturing overhead 28,000 total manufacturing overhead $ 43,000 variable selling expense $ 12,000 fixed selling expense 18,000 total selling expense $ 30,000 variable administrative expense $ 4,000 fixed administrative expense 25,000 total administrative expense $ 29,000 required: 1. with respect to cost classifications for preparing financial statements: a. what is the total product cost

Answers: 2

Answer

Business, 23.06.2019 02:10

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?

Answers: 1

Answer

You know the right answer?

Use the after-tax IRR method to evaluate the following three alternatives using 60% bonus depreciati...

Questions