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Q10. Jayco, Inc. is considering the purchase of a new machine for $60,000 that will reduce manufacturing costs by $5,000 annually.
§ Jayco will use the MACRS accelerated method (5 year asset) to depreciate the machine, and expects to sell the machine at the end of its 6-year operating life for $10,000. (The percentages for the 5-year MACRS class are, beginning with year 1 and ending with year 6, 20%, 32%, 19%, 12%, 11%, and 6%.)
§ The firm expects to be able to reduce net working capital by $15,000 when the machine is installed, but required working capital will return to the original level when the machine is sold after 6 years.
§ Jayco's marginal tax rate is 40%, and it uses a 12% cost of capital to evaluate projects of this nature. Use this data for the next 4 questions.
What is the first year's modified accelerated cost recovery system (MACRS) depreciation?
A) $12,000.
B) $15,000.
C) $10,000.
Q11. What is the initial cash outlay?
A) $75,000.
B) $15,000.
C) $45,000.
Q12. What is the first year's operating cash flow?
A) $7,800.
B) $4,800.
C) $3,000.
Q13. What is the terminal year's cash flow (not counting the last year's operating cash flow)?
A) $21,000.
B) ($9000).
C) ($4,000).
[此贴子已经被作者于2009-3-3 18:02:57编辑过] | 
发表于 2009-3-3 17:44
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