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What is the maximum equipment purchase price the company can pay if its after-tax MARR is 10%?
Rent a similar car for $80/day. Based on a 12% after-tax rate of return, how many days per year must he use the car to justify its purchase?
If the firm wants a 15% rate of return, after considering both state and federal income taxes, how much can it afford to pay for the computer?
At what price would she have to sell the house at the end of 10 years to achieve her objective?
What minimum equal annual benefit must Able obtain before taxes in each of the 5 years to justify purchasing the electronic testing device?
How many days per year must the truck be used to justify its purchase? Base your calculations on straight-line depreciation and a 50% income tax rate.
How large an investment in the new equipment can be economically justified by savings obtained by eliminating the present equipment and labor costs?
What is the present worth of the first 4 years of after-tax cash flows from this barge? Would you recommend that Mid-America purchase this barge?
Christopher receives a $2000 savings plus a $600 income at the end of each year, use present worth to determine if the system pays for itself in 8 years?
Tampa Electric Company (TECO) is planning a major upgrade in its computerized demand. Determine the estimated after-tax cash flow from this project in 2010.
Assuming MACRS depreciation and an income tax rate of 50%, determine the investor's after-tax rate of return on this investment.
Assuming a MARR of 10% and using NPW, determine if this was a good investment on an after-tax basis.
Determine the after-tax net present worth of this asset over the 5-year service period.
Determine the annual depreciation and the capital gain (loss) resulting from the sale of the house.
Granny's Butter and Egg Business is such that she pays. If Granny works with an after-tax MARR of 10% and uses MACRS depreciation, should she buy the churn?
Uncle Elmo is contemplating a $10,000 investment in a methane gas generator. Construct the after-tax cash flow for the 10-year project life.
What is the after-tax payback period for this investment? If the company wants a 12% after-tax rate of return, is this a desirable investment?
If Xon has a 34% combined incremental tax rate and a 10% after-tax MARR, does the investment appear to be satisfactory?
A chemical company bought a small vessel for $55,000; it is to be depreciated by MACRS depreciation. Compute its after-tax rate of return on the vessel.
A profitable wood products corporation is considering buying a parcel of land. Compute the after-tax cash flow based on a 34% combined income tax rate.
The combined federal and state income tax rate for Ogi is 45%. Compute the after-tax rate of return for the truck.
A special power tool for plastic products costs $400,000 has a 4-year useful life and no salvage value. Compute the before-tax rate of return.
How long will it take for the after-tax benefits to equal the $100,000 cost? In other words, what is the after-tax payback period?
How many landings and takeoffs per day are needed to justify the runway if each landing or take-off is worth $85 to the airport authority?
he Engineering Building at State University needs $500K worth of repair and renovation. Determine the implied interest rate for forgoing the repairs.