Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a company is considering purchasing a new machine

A company is considering purchasing a new machine that would cost $60,000 and the machine would...

70.2K

Verified Solution

Question

Finance

A company is considering purchasing a new machine that wouldcost $60,000 and the machine would be depreciated (straight line)down to $0 over its four year life. At the end of four years it isbelieved that the machine could be sold for $12,000. The machinewould increase EBDT by $42,000 annually. the company's marginal taxrate is 34%.

What the RATFCF’s associated with the purchase of thismachine?

$31,800

$32,820

$30,452

$29,940

Answer & Explanation Solved by verified expert
3.8 Ratings (455 Votes)
Solution The RATFCFs associated with the    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

A company is considering purchasing a new machine that wouldcost $60,000 and the machine would be depreciated (straight line)down to $0 over its four year life. At the end of four years it isbelieved that the machine could be sold for $12,000. The machinewould increase EBDT by $42,000 annually. the company's marginal taxrate is 34%.What the RATFCF’s associated with the purchase of thismachine?$31,800$32,820$30,452$29,940

Other questions asked by students

Q

3 cm s 9 A ring of radius R is hung by a hail on...

Physics
Q

Tert 2 52 28 Three friends decide to go out to eat and then go...

Geometry
Q

Let T: R ? R be a linear transformation such that:T(1,0,0)=(4, -2, 1)T(0,1,0)=(5,-3,0)T(0,0,1)=(3,-2,0)Find T(3, -5,2).

Geometry
Q

Estimate the limit numerically or state that the limit does not exist 4 sin 9x...

Calculus
Q

The Hatfields are having their annual family reunion They are expecting 175 people and they...

Algebra
Q

d f x y z log 1 x y z 0 1 0 Let xy...

Algebra
Q

number of colors needed to color the graph 2 F B E

Algebra
Q

Imad Walid and Khaled are partners in a solidarity company, where profits, and losses are...

Accounting
Q

Please help with questions 1-6 Northwood Company manufactures basketballs. The company has a ball...

Accounting
Q

The managers of Gizmo Manufacturing Limited have gathered the following information to assist you...

Accounting
Q

Problem 9.6 Utilizing a Constrained Resource (LO2- CC7,8)(Algo) Soft Toys Ltd (STL) produces...

Accounting
Q

Hel 16 0.25 points You are considering an investment in a mutual fund with a...

Finance