Your company is considering a new project that will require $250,000 of new equipment at the start of the project. The equipment will have a depreciable life of eight years and will be depreciated to a book value of $10,000 using straight-line depreciation. The cost of capital is 12 percent, and the firm's tax rate is 21 percent. Estimate the present value of the tax benefits from depreciation.

Answers

Answer 1

The present value of the tax benefits from depreciation which is a non cash expenditure under capital budgeting decisions is $10432.80

What is Depreciation?

According to the prudence concept of accounting convention, Depreciation is a non cash expenditure that has been charged against the profit. Depreciation is value that amortized over useful life of tangible fixed asset. The absolute decline in the value of asset due to obsolesce, usage of asset, wear & tear of fixed asset is referred as depreciation.

As per accounting standard on property, plant & equipment depreciation can be computed by straight line method and written down value method.

While analyzing the capital budgeting decision from the equipment to be acquired the cash inflows and outflows during the currency of the project shall be accounted for.

The tax benefit from depreciation expenses will be consider as cash inflow. The same shall be calculated by the present value annuity factor for the as follows:

cost of capital = 12 %

Depreciation = $10000

Life of the project = 8 years

Tax rate = 21%

Present value annuity factor (PVAF) at 12% for 8 years will be:

0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404

Grand total of the (PVAF) at 12% = 4.968

Now multiply the PVAF with depreciation amount

Present Value of Depreciation = 4.968 × 10000 = $49,680

Tax benefit from depreciation = $49,680 × 21% = $10432.8

Thus the tax Tax benefit from depreciation is $10432.80

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Related Questions

A six sided die is rolled two times arrange the events in order from the event with the highest probability to the event with the lowest probability

Answers

Answer:

6

Step-by-step explanation:

A six sided die is rolled two times arrange the events in order from the event with the highest probability to the event with the lowest probability  

The cost of an amusement park ticket has been increasing by the same percentage since 2000.
a. The equation c(t)=80(1.03)^t represents the cost of a ticket in dollars as a function of tea the number of years since 2000 explain what the 80 and 1.03 tells us about the situation
b. what is the percent increase in to get prize from year to year?
what does c(5) mean in the situation? find its value and show your reasoning

Answers

a. 80 tells you the ticket price in the year 2000, 1.03 tells you that the ticket price increases by 3% every year

b. c(5) means what the cost of the ticket in 2005 is, it’s value is 92.74 because 80(1.03)^5 is 92.74

What is -6 - t/4 = -1

Answers

Answer: t=-20

Step-by-step explanation:

Claire tosses a coin and rolls a number cube 100 times. How many times should she expect to have the coin show heads and roll a 1 or 2?

Answers

F. 17 would be your answer I believe







Which graph represents an exponential function?

Answers

Answer:

The answer to your question is the third one

Step-by-step explanation:

The first graph is the graph of a

The second graph is of a rational function

The third one is of an exponential function

As a member of the United Nations, you must consider each of the following proposals. In each case, assume that the United Nations would like to receive as many emergency supplies as possible, while still having each nation give equally.
a. One proposal is that each country gives medicine packages. How many food packages should the United Nations require from each country in this case? Explain how you made your decision.
b. Another proposal is to get the largest number of medicine packages possible. What is the largest number of medicine packages that each country can offer? How did you find your answer?

Answers

Answer:

Following are the solution to the given question:

Step-by-step explanation:

For point a:

Initially, we have had to figure out how many packaged food the country should offer with both the biggest quality and then the number of packages each country should give.

Find out just how many food packages a nation should donate with both the lowest budget.

For point b:

They first need to figure out just how many medication packages the country should donate on the lowest budget, and then how many packages each country can donate.

Find out just how many medicinal packets the smallest budget nation can donate.

A machine at a graphic design studio produces paper labels for juice bottles. This graph represents the number of labels produced over time.

Zoom in if you cannot see!

Don’t answer if you don’t know the answer. Whoever gets the correct answer will get Brainliest! :)

Answers

Answer:

Option B, would be the correct answer: 75 labels per minute

Step-by-step explanation:

The number of labels produced per minute would be a constant value which would be the slope of this graph represented above.

Slope = [tex]\frac{rise}{run}[/tex]

Slope = [tex]\frac{150}{2}[/tex]

Slope = 75

Hope this helps!

I think it’s 150 since 1 minute= 150 labels

express the following ratios as fractions in their lowest term
a.4 birr to 16 cents
b.5 days to 100 hrs​

Answers

Answer:

1/4 is A and 1/20 is B

Step-by-step explanation:

Not much of an explanation needed

The ratios 4 birr to 16 cents and 5 days to 100 hrs can be expressed as [tex]\frac{1}{4}[/tex] and [tex]\frac{1}{20}[/tex] in their lowest terms.

What is Ratio?

Ratio is the relationship between two quantities which shows the number of times that the one quantity is contained within the other quantity.

If 'a' is related to 'b', they can be denoted in terms of ratio as a : b.

Ratios can be expressed as fractions.

(a) 4 birr to 16 cents = [tex]\frac{4}{16}[/tex]

The highest common factor of both 4 and 16 is 4.

[tex]\frac{4}{16}[/tex] = (4 × 1) / (4 × 4) = [tex]\frac{1}{4}[/tex]

(b) 5 days to 100 hrs = [tex]\frac{5}{100}[/tex]

The highest common factor of 5 and 100 is 5.

[tex]\frac{5}{100}[/tex] = (5 × 1) / (5 × 20) = [tex]\frac{1}{20}[/tex]

Hence the ratios can be expressed as [tex]\frac{1}{4}[/tex] and [tex]\frac{1}{20}[/tex] in their lowest terms.

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An aquarium holds 11.5 cubic feet of water, and is 2.2 feet long and 1.6 feet wide. What is its depth??

The depth is _____ feet.​

Answers

Answer: 3.52

Step-by-step explanation:

Hey!

So for this problem, we need to follow the Volume formula which is:

length x width x height

We know our length and width so all we need is our height (depth)

First , We multiply our length and width.

2.2 x 1.6 = 3.52

Next, we figure out what times this will equal 11.5. We can see that this number can’t be times 4 because that would make it twelve so we need to lower it. We can divide 11.5 (the volume) by 3.52 to get our answer.

We get 3.267. Rounded to the hundredths it would be 3.27 ft.

Hope this helps! :D

Sorry if I messed anything up!

Comment down below if you have any further questions!

Which measure would change if you replaced 67 with 115
23, 89, 15, 67, 32, 41
A. Lower quartile
B. Mean
C. Mode
D. Median
HELP PLEASE! ​

Answers

Mean
As this value is greater than 67 and the highest number in original sequence

I need help pls now ??

Answers

the answer is a_______

Write the equation of a line in slope-intercept form that has a slope of -5 and passes through the point (3,- 2)

Answers

9514 1404 393

Answer:

  y = -5x +13

Step-by-step explanation:

We know from the slope-intercept equation ...

  y = mx + b

that the y-intercept b can be found as ...

  b = y - mx

Filling in the given values of m and (x, y), we find ...

  b = -2 -(-5)(3) = 13

Then the equation is ...

  y = -5x +13

Add 1.8m, 77cm, 210mm and give your answer in cm

Answers

The total length is 2.077m (2177 cm).

What is length?

Length is a measurement of size, distance, or duration. It can refer to physical size (length of a field, length of an object, etc.), distance (length of a journey, length of a river, etc.), or duration (length of a movie, length of a school day, etc.). Length can also refer to the duration of time it takes to complete something (length of a task, length of a process, etc.). Length is typically measured in units such as meters, feet, inches, miles, kilometers, and seconds.

The given measurements can be added together to calculate a total length. The addition of 1.8m, 77cm, and 210mm can be expressed in the form of a sum equation. The equation would be 1.8m + 77cm + 210mm = ?.

To solve this equation, the measurements need to be converted to the same unit of measurement. In this case, all measurements can be converted to cm. 1.8m is equal to 1800cm, 77cm is equal to 77cm, and 210mm is equal to 21cm.

Therefore, the sum equation becomes 1800cm + 77cm + 21cm = ?. To find the total length, the numbers can be added together.

The total length is 1977cm. However, since the measurements are expressed in decimals, the answer must also be expressed in decimals. Therefore, the total length is 2.077m (2177 cm).

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Alan has 11 nickels and
dimes in his pocket. When
he counted his change he
found he had $0.95. How
many dimes does Alan
have?

Answers

Answer:

4

Step-by-step explanation:

Nickels are 5 cents a piece so you will multiple 11 by 5 to find how much Alan has in nickels. Then subtract that from the total of 95 to get your answer.

11 × 5 = 55

95 - 54 = 40

Since dimes are worth 10 cents you divide 40 by 10 and that is how many dimes Alan has.

40/10=4

Calculate the lengths of the 2 unlabeled sides. Round answers to the nearest tenth, if necessary.

Answers

Answer:

JG = 6.5 & JH = [tex]6.5 *\sqrt{2}[/tex] or 9.192388155

Step-by-step explanation:

45-45-90 triangles follow a pattern in which the smallest sides are equal & we represent them by x.

The hypotenuse is equal to [tex]x*\sqrt{2}[/tex]

So that's how we find our answers :0)

Please someone help me !!

Answers

Answer: $26.81

Step-by-step explanation: the tank holds 16.5 gallons. Meaning, half of the tank is 8.25 gallons. Multiply that by the cost of the gas, 3.25, and you get 26.81

Ashanti cashed her paycheck at Cash-n-Go. The fee at Cash-n-Go is 7.5% of the amount of the check. Her paycheck was $670. How much was the fee for Ashanti to cash her paycheck?​

Answers

Answer:

$50.25

Step-by-step explanation:

7.5% as a decimal is 0.075.

So, the fee is [tex](0.075)(670)=\$50.25[/tex].

the point (2, 6) is located on a line with slope of 3. which point could also be located on the line?​

Answers

Answer

using y = mx+c

where m is the slope and c

6 = 3(2)+c

6 = 6 + c

c= 0

Y-intercept is where the line passes through the y-axis, which is where x = 0

So, when x = 0, y = 0

Another point on the line, then, is {0,0}

BC is tangent to ⊙A at point B. What is the value of x?

Answers

The value of x is 6 or 3.5.

What is Pythagoras theorem?

The relationship between the three sides of a right-angled triangle is explained by the Pythagoras theorem, commonly known as the Pythagorean theorem. The Pythagorean theorem states that the square of a triangle's hypotenuse is equal to the sum of its other two sides' squares.

We have,

Radius = (x-2)

CB= 2x -9

Using Pythagoras theorem

AB² + CB² = AC²

(x-2)² + (2x-9)² = (x-2+1)²

x² + 4  -4x + 4x² + 81 - 36x = x² + 1 -2x

4x² -38x + 84 = 0

Solving the quadratic equation we get

x= 6 or 3.5

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A pile of sand has a weight of 90 kg.
The sand is put into a small bag, a medium bag and a large bag
in the ratio 2:3:7.
Work out the weight of sand in each bag.
but

Answers

Answer:

i hope it helps

mapriend

Answer:

Step-by-step explanation:

divide 90 by 2, 3, 7

small bags 90 ÷ 2 = 45

medium bag 90 ÷ 3 = 30

large bag 90 ÷ 7 = 12.8 round it to nearet whole number = 13

If a coin flipped twenty five times and lands tails up seventeen times, the blank
Probability that the coin lands up is 17/25

Answers

I’m pretty sure it’s the experimental probability that’s 17/25.
The answer to that question is probably the experimental probablilith but I’m not sure sorry!

Please help answers do in 30 minutes

Answers

Answer:

The angle for x would be 45°

A construction worker is making concrete by mixing sand, gravel, and cement in water. For each pound of sand, he uses 1 2/3 pounds of gravel. For each pound of gravel, he uses 2/5 pound of cement. He is making enough concrete that he needs to use 3 pounds of sand. How many pounds of cement does he use? PLEASE HELP DUE NOW !! TYYY
A. 1 pound
B. 1 4/15 pounds
C. 2 pounds
D. 2 1/15 pounds

Answers

Using mathematical operations, the construction worker requires C. 2 pounds of cement to mix 3 pounds of sand.

What are the mathematical operations?

The basic mathematical operations are subtraction, addition, division, and multiplication.

These mathematical operations combine numbers, variables, mathematical operands, and the equation symbol to solve mathematical problems.

In this situation, we can apply the mathematical operation of multiplication to determine the quantity of cement required for 5 pounds of gravel.

The quantity of gravel per pound of sand = 1²/₃ = 1.667 pounds

For 3 pounds of sand, the quantity of gravel required = 5 pounds (1²/₃ x 3)

The quantity of cement per pound of gravel = ²/₅ pounds or 0.4

For 3 pounds of sand and 5 pounds of gravel, the quantity of cement required = 2 (5 x 0.4) or (5 x ²/₅)

Thus, 2 pounds of cement are needed to mix with 3 pounds of sand and 5 pounds of gravel.

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Mrs. Sarto told her son that if he babysat his baby sister, she would pay him $5.80 per hour. If Mrs. Sarto’s son babysits his sister for 5.2 hours, how much money will he be paid?

Answers

Ans =$30.16
Solution
$5,80*5.2 hours =$30.16

PLEASE HELP! I WILL GIVE BRAINLIEST! Doug bought a meal in a town that has no sales tax. He tips 20%. Select all meals that Doug could buy for $20 or less. SELECT ALL CORRECT ANSWERS
A.$17.15
B.$16.50
C.$16.80
D.$16.65
E.$15.25
F.$17.00

Answers

Answer: E and B are the right answer I think tell me if im wrong :)

The florist sells roses, carnations, tulips, daisies, and violets. How many ways can he choose three types of flowers for an arrangement?

Answers

What are the options

Devika is making porridge by following this recipe.
She has 4 pints of milk and plenty of other ingredients.
What is the maximum number of whole servings she can make?
Note: 1 pint = 568 mL
Recipe: Serves 1
40 g oats
300 mL milk

Answers

4 pints x 568ml = 2272ml (this is how much milk she has)

2272ml divided by 300ml (the amount the recipe asks for) = 7.573...

round it down to get the nearest whole number, you end up with 7. (you can’t round it up to 8, because she has less than the amount needed for 8 servings)

so, the maximum number of whole servings she can make is 7.

Find one value of x that is a solution to the equation:
(3x + 7)2 = -6x – 14

Answers

Answer: x = -7/3

Step-by-step explanation:

https://www.symbolab.com/solver/step-by-step/%5Cleft(3x%20%2B%207%5Cright)2%20%3D%20-6x%20-%2014

there are the steps

Answer:x=-7/3

                   

Step-by-step explanation:(3x+7)(2)=−6x−14

(3x)(2)+(7)(2)=−6x+−14(Distribute)

6x+14=−6x+−14

6x+14=−6x−14

6x+14+6x=−6x−14+6x

12x+14=−14

12x+14−14=−14−14

correct answers only, if you send me a link then you will be reported

Answers

Answer:

c

Step-by-step explanation:

Plz help me have a blessed one

Answers

its D because you have to times 6 then minus 6!
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