Sunday
April 20, 2014

Homework Help: accounting

Posted by jim1 on Friday, March 11, 2011 at 11:42pm.

Information about a project Darcy Company is considering is as follows:
Investment $1,000,000
Revenues $700,000
Variable costs $140,000
Fixed out-of-pocket costs $80,000
Cost of capital 12%
Tax rate 40%


The property is considered 5-year property for tax purposes. The company plans to use MACRS and dispose of the property at the end of the sixth year. No salvage value is expected. Assume all cash flows occur at the end of the year. Round amounts to dollars.

The tax savings from depreciation in Year 2 would be

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

UALR - Information about a project Darcy Company is considering is as follows: ...
accounting - Cournot Company sells 100,000 wrenches for $12 a unit. Fixed costs ...
accounting - "Harris Company manufactures and sells a single product. A ...
Finance - We are considering the introduction of a new product. Currently we are...
Finance - Firm is contemplating the purchase of a new warehouse inventory ...
Finance - What is the projects initial outlay? Should the project be accepted ...
Economics - The accompanying table shows a car manufacturerís total cost of ...
Accounting - The standard costs and actual costs for factory overhead for the ...
managerial accounting - 32) Sarker manufacturing company produces and sells 40,...
Accounting - The standard costs and actual costs for factory overhead for the ...

Search
Members