Business, 09.03.2020 23:36 dahloli4442

Company is contemplating whether to use MACRS depreciation or straightminusline depreciation for a plant asset. The following information is available: MACRS Depreciation Straight-line Depreciation Present Value of One At 12% Year 1 $13,333 $10,000 0.8929 Year 2 $17,780 $10,000 0.7972 Year 3 $5,924 $10,000 0.7118 Year 4 $2,964 $10,000 0.6355 Assume the tax rate is 40%. Over the four years examined, what is the present value of the difference in tax savings between MACRS depreciation and straightminusline depreciation?

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 13:00, AmbitiousAndProud

The local electronics store is offering a promotion "1-year: same as cash," meaning that you can buy a tv now, and wait a year to pay (with no in

Answers: 1

continue

Business, 22.06.2019 06:40, Amber423

As a finance manager at allsports communication, charlie worries about the firm's borrowing requirements for the upcoming year. he knows the benefit of estimating allsports' cash disbursements and short-term investment expectations. facing these concerns, a(n) would provide charlie with valuable information by providing a good estimation of whether the firm will need to do short-term borrowing. capital budget cash budget operating budget line item budget

Answers: 3

continue

Business, 22.06.2019 12:20, KindaSmartPersonn

Bdj co. wants to issue new 22-year bonds for some much-needed expansion projects. the company currently has 9.2 percent coupon bonds on the market that sell for $1,132, make semiannual payments, have a $1,000 par value, and mature in 22 years. what coupon rate should the company set on its new bonds if it wants them to sell at par?

Answers: 3

continue

Business, 22.06.2019 17:10, alexwlodko

Storico co. just paid a dividend of $3.15 per share. the company will increase its dividend by 20 percent next year and then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. if the required return on the company’s stock is 12 percent, what will a share of stock sell for today?

Answers: 1

continue

You know the right answer?

Company is contemplating whether to use MACRS depreciation or straightminusline depreciation for a p...