英语支持板资本预算.PPT

9.* 9.* 9.* 9.* 9.* Note that with MACRS you do not subtract the expected salvage from the initial cost. Also note that the MACRS % is multiplied by the initial cost every year. For some reason, students want to multiply by the book value. 9.* 9.* 9.* 9.* 9.* The year 5 cash flow is the most difficult for students to grasp. It is important to point out that we are looking for ALL changes in cash flow associated with selling the machine today instead of in 5 years. If we do not sell the machine today, then we will have after-tax salvage of 10,000 in 5 years. Since we do sell the machine today, we LOSE the 10,000 cash flow in 5 years. 9.* The negative signs in the CFFA equation were once again carried through the table. That way outflows are in the table as negative and inflows are positive. 9.* An enterprises is considering the purchase of a new machine tool to replace the current machine. The new cost $75,000 and requires $5,000 in installation costs. It will be depreciated under MACRS using a 5 year recovery period. The old machine was purchased for an installed costs of $50,000 4 years ago; it was being depreciated under MARS using a 5 year recovery period. The old machine tool can be sold today for $55,000 net of any removal or cleanup costs. As a result of the proposed replacement, firm’s investment in net working capital is expected to increase by $15,000. the firm pays taxes at a rate of 40 percent on both ordinary income and capital gains. a. Calculate the book value of the old machine tool. b. Determine the taxes, if any, attributable to the sale of the old machine tool. c. Find the intial investment associated with the proposed equipment replacement 9.* 9.* 9.* gaap tax rule: sold at book value,no tax; above book value,the difference pays tax; below book value,tax ? 9.* gaap tax rule: sold at book value,no tax; above book value,the difference pays tax; below book value,tax ? 9.* A machine currently in use was originally purchased 2 years ago for $4