Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. question # 17 foot loose software is considering a

Question # 17 Foot Loose Software is considering a new project whose data are shown...

70.2K

Verified Solution

Question

Finance

Question # 17

Foot Loose Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, and the allowed depreciation rates for such property are 33.0%, 45.0%, 15.0%, and 7.0% for Years 1 through 4. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. Revenues and other operating costs are expected to be constant over the project's 10-year expected life. What is the Year 1 cash flow?

Equipment cost $55,000
Sales revenues, each year $77,900
Operating costs $21,300
Tax rate 25.0%
a. $46,988
b. $42,450
c. $56,600
d. $43,413
e. $60,600

Answer & Explanation Solved by verified expert
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

Other questions asked by students

Q

III. A health-food store stocks two different brands of certain type of grain. Let X =...

Statistics
Q

James travels from Toronto to Calgary then Vancouver and finally to Prince George. There is a...

Basic Math
Q

Explain the role that hormone play in both female ovarian and uterine cycles. Name all four...

Medical Sciences
Q

A cylinder of volume 0.240 m3 contains 10.1 mol of neon gas at 21.6°C. Assume neon...

Physics
Q

Digital dashboards offer an effective and efficient way to view enterprisewide information at near real-time. According...

General Management
Q

Complete the questions below. Submit only an Excel spreadsheet with your name, one tab for each...

Finance
Q

Gravel is being dumped from a conveyor belt at a rate of 20 cubic feet...

Calculus
Q

Find the derivative of the function g x g x e 3x 1 4 3x...

Calculus
Q

etermine the surface area of the sides and roof in square feet and the volume...

Algebra
Q

1. Why should predetermined overhead rates be used instead of actual rate? Justify your views...

Accounting
Q

25. Variable labor budget: efficiency. If the assumed efficiency of the providers changed to 85%...

Accounting
Q

"[McDonald's] franchises and operates McDonald's restaurants, which serve a locally-relevant menu of quality food and...

Accounting