Posted: June 30th, 2022

Calculate the annual depreciation allowances

Calculate the annual depreciation allowances

1. Downside 10-Three Calculating Projected Web Earnings [LO1]

A proposed new funding has projected gross sales of $720,000. Variable prices are 60 % of gross sales, and stuck prices are $161,000; depreciation is $62,000. Put together a professional forma revenue assertion assuming a tax fee of 30 %. What’s the projected web revenue? (Enter all quantities as constructive values.)

2. Downside 10-Four Calculating OCF [LO1]

Fill in the lacking numbers for the following revenue assertion. (Enter all quantities as constructive values.)

Calculate the OCF.

What’s the depreciation tax protect?

Three. Downside 10-6 Calculating Depreciation [LO1]

A bit of newly bought industrial tools prices $974,000 and is classed as seven-year property beneath MACRS. The MACRS depreciation schedule is proven in Desk 10.7. Calculate the annual depreciation allowances and end-of-the-year e-book values for this tools. (Depart no cells clean – make certain to enter “zero” wherever required. Spherical your solutions to 2 decimal locations. (e.g., 32.16))

Four. Contemplate an asset that prices $666,000 and is depreciated straight-line to zero over its nine-year tax life. The asset is for use in a five-year venture; at the finish of the venture, the asset will be offered for $169,000. If the related tax fee is 30 %, what’s the aftertax money move from the sale of this asset?

5. Downside 10-9 Calculating Undertaking OCF [LO1]

Keiper, Inc., is contemplating a brand new three-year growth venture that requires an preliminary mounted asset funding of $2.46 million. The mounted asset can be depreciated straight-line to zero over its three-year tax life, after which period it is going to be nugatory. The venture is estimated to generate $2,000,000 in annual gross sales, with prices of $695,000. If the tax fee is 35 %, what’s the OCF for this venture? (Enter your reply in , not tens of millions of , i.e. 1,234,567.)

6. Canine Up! Franks is a brand new sausage system with an put in price of $525,000. This price can be depreciated straight-line to zero over the venture’s five-year life, at the finish of which the sausage system will be scrapped for $79,000. The sausage system will save the agency $205,000 per 12 months in pretax working prices, and the system requires an preliminary funding in web working capital of $38,000. If the tax fee is 34 % and the low cost fee is 10 %, what’s the NPV of this venture? (Don’t spherical intermediate calculations and spherical your remaining reply to 2 decimal locations. (e.g., 32.16))

7. Downside 10-14 Undertaking Analysis [LO1]

Your agency is considering the buy of a brand new $575,000 computer-based order entry system. The system can be depreciated straight-line to zero over its five-year life. It will likely be value $59,000 at the finish of that point. You’ll save $265,000 earlier than taxes per 12 months so as processing prices, and it is possible for you to to scale back working capital by $74,000 (it is a one-time discount). If the tax fee is 34 %, what’s the IRR for this venture? (Spherical your reply to 2 decimal locations. (e.g., 32.16))

eight. A five-year venture has an preliminary mounted asset funding of $360,000, an preliminary NWC funding of $40,000, and an annual OCF of −$39,000. The mounted asset is totally depreciated over the lifetime of the venture and has no salvage worth. If the required return is 12 %, what is that this venture’s equal annual price, or EAC? (Destructive quantity ought to be indicated by a minus signal. Don’t spherical intermediate calculations and spherical your remaining reply to 2 decimal locations. (e.g., 32.16))

Order | Check Discount

Tags: best essay writing service tiktok, best essay writing service uk, best essay writing service uk trustpilot, best research paper writing service, Best Research Paper Writing Services in the U.S., cheap essay writing service uk