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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | Jul 2017 |
| Last Sign in: | 304 Weeks Ago, 5 Days Ago |
| Questions Answered: | 15833 |
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MBA,PHD, Juris Doctor
Strayer,Devery,Harvard University
Mar-1995 - Mar-2002
Manager Planning
WalMart
Mar-2001 - Feb-2009
Please show work so I can learn. Thank you.
Your company is contemplating the purchase of a large stamping machine. The machine will cost $180,000. Additional transportation and installation costs are $5,000 and $10,000 respectively. Its MV at the end of five years is estimated as $40,000. The IRS has assured you that this machine will fall under a 3-year MACRS class life category. The justifications for this machine include $40,000 savings per year in labor and $30,000 savings per year in reduced materials. The before-tax MARR is 20% per year, and the effective income tax rate is 40%. The taxable income for year three is:
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