1 answer

Center Sports is considering a new automated maintenance machine that will lower costs by $468,396 per...

Question:

Center Sports is considering a new automated maintenance machine that will lower costs by $468,396 per year. The machine costs $950,806 and will be depreciated straight line to zero over the 3 year life of the equipment. If Center is taxed at a rate of 27%, what is the operating cash flow associated with the purchase?

(Round your answer to the nearest dollar)


Answers

Annual depreciation=(Cost-Salvage value)/Useful Life

=950,806/3=$316935.333

OCF=Reduction in cost*(1-tax rate)+Tax savings on depreciation

=468,396*(1-0.27)+(316935.333*0.27)

=$427502(Approx).

.

Similar Solved Questions

1 answer
Which of the following states have implemented health coverage programs to increase access to health care? Select all th...
Which of the following states have implemented health coverage programs to increase access to health care? Select all that apply. A. Maryland B. Maine C. Massachusetts D. Vermont E. New York...
1 answer
Convert the second-order initial-value problem into a system of first-order initial value problems. y'' + 7y'...
Convert the second-order initial-value problem into a system of first-order initial value problems. y'' + 7y' + 2y = e^(3x) y'(0)=1 y''(0)=1...
1 answer
In polar components, if is zero for a particle, the particle is moving in a circular...
In polar components, if is zero for a particle, the particle is moving in a circular path. moving on a straight line. moving with constant velocity. not moving....
1 answer
Determine the values of limsup(xn) and liminf(xn).
Determine the values of limsup(xn) and liminf(xn)....
2 answers
A student stands at the edge of a diving board that is 3 m high
a student stands at the edge of a diving board that is 3 m high. the student's weight is 350 N. what is the student's gravitational potential energy relative to the surface of the water?...
1 answer
Calculate the total charge passed in the Daniell cell during 20 min using the data given...
Calculate the total charge passed in the Daniell cell during 20 min using the data given in the table: Time, min 0 Current, mA 21 10 15 20 23 24 25...
1 answer
Please show work? Find the radius of convergence and interval of convergence of the series. (-1)"...
please show work? Find the radius of convergence and interval of convergence of the series. (-1)" 6n +1 no R = I ? ? Show My Work Red...
1 answer
Discuss the role of field testing and why it is necessary in qualitative research
Discuss the role of field testing and why it is necessary in qualitative research...
1 answer
How does aerobic and anaerobic respiration compare in yeast?
How does aerobic and anaerobic respiration compare in yeast?...
1 answer
Calculate the second moment of area around axis z-z in m^4 and the maximum first moment...
Calculate the second moment of area around axis z-z in m^4 and the maximum first moment of area Q in m^3 Find the maximum load if the maximum bending stress is not to exceed 110 MPa and the maximum shear stress is not to exceed 55 MPa Find the resulting bending and shear stresses at a point located ...
1 answer
Harrelson Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials...
Harrelson Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials and conversion costs are incurred evenly throughout the process. For the month of April, the work in process accounts show the following debits. Cooking Canning Beginning wo...
1 answer
12. Describe how (-) ssRNA and dsRNA viruses switch from mRNA to genome RNA synthesis.
12. Describe how (-) ssRNA and dsRNA viruses switch from mRNA to genome RNA synthesis....
1 answer
Figure 2 shows an 8-bit voltage-mode DAC implemented with an LM385 2.5V Zener diode and a...
Figure 2 shows an 8-bit voltage-mode DAC implemented with an LM385 2.5V Zener diode and a 741 op amp. R1 = 10 kQ. R2 = 30 kΩ and R = 10 k(2. Switches SW1. SW2. SW8 are controlled by bl, b2,... b8, respectively a. Find VFSR, VFSv, resolution of the DAC b. Find the corresponding output voltages ...
1 answer
Solve the system of equations. Express your answer in fractions. 5x – 7y = 31 4x...
Solve the system of equations. Express your answer in fractions. 5x – 7y = 31 4x + 3y = 19...
1 answer
How do you solve the system #x-2y=8# and #-x+3y=-5#?
How do you solve the system #x-2y=8# and #-x+3y=-5#?...
1 answer
Discuss what resources are often necessary for nonacute care for cardiorespiratory issues. Explain how they support...
Discuss what resources are often necessary for nonacute care for cardiorespiratory issues. Explain how they support patient independence and decrease readmission....