Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

Problem: St. Johns rever shipyards welding machine is fifteen years old, fully depreciated, obsolete, and has no salvage value. But, even though it is obsolete, it is perfectly functional as originally designed and can be employed for quite a while longer. A new welder will cost $182,500 and have an estimated life of eight years with no salvage value. The new welder will be much more well-organized, but, and this improved efficiency will raise earnings before depreciation from $27,000 to $74,000 per year. The new machine will be depreciated over its five year MACRS recovery period, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The applicable corporate tax rate is 40% and the firm's WACC is 12%. Should the old welder be replaced by the new one?

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M93659

Have any Question? 


Related Questions in Financial Accounting

Need at least 750 wordsprepare and submit a report about

Need at least 750 words Prepare and submit a report about any government process which has been re engineered using IT like E-gate in the airport. Discuss the strategies of change management that you think was applied to ...

Assignemntinstructions for accessing public company

Assignemnt Instructions for Accessing Public Company Financial Statements Accessing through SEC website 1. Start by going to www.sec.gov. 2. Under the ‘Filings' Menu, select ‘Company Filings Search' 3. Type in the Compan ...

One of the auditorrsquos roles is to verify inventory

One of the auditor’s roles is to verify inventory values. The auditor would have to verify both the quantity on hand and the unit cost to determine the inventory value. How would the auditor verify the quantity?

Assignment intermediate accounting for finance working

Assignment: Intermediate Accounting for Finance Working Capital Case Study Your job is to make ABC cash flow in years 2 and 3 (positive ending cash balances); which means you must balance ABC's cash conversion cycle days ...

Assignmentrowland company is a small editorial services

Assignment Rowland Company is a small editorial services company owned and operated by Marlene Rowland. On August 31, 2016, the end of the current year, Rowland Company's accounting clerk prepared the following unadjuste ...

Prepare the statement of stockholders equity sectionbelow

Prepare the Statement of Stockholders Equity Section Below is a list of accounts and final balances for Quiet Company as of December 31, 2009. Common Stock = $225,000 Long term notes Receivables = $85,000 Bonds Payable = ...

Explain the circumstances under which each of the following

Explain the circumstances under which each of the following types of ownership would be most desirable. Give reasons for your responses. A. Joint tenancy B. Tenancy in common C. Tenancy by the entirety 2. Which of the un ...

Bulllocate 1-2 articles from a news source that discusses

• Locate 1-2 articles from a news source that discusses the Federal Intelligence Surveillance Court (FISA Court) and write a 1-2 page paper that answers the following questions: 1. How and why was this court created? 2. ...

What projects can restore the rights and dignity of people

What Projects can restore the rights and dignity of people and societies who may be, or are forced into motion due to social injustices, politics, economic pressures, climate change and war.

Exercise 1 fixed versus variable cost behaviornasenko

Exercise 1: Fixed versus variable cost behavior Nasenko Company's cost and production data for two recent months included the following:                            March    April Production (units)   200       400 Rent   ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro