Questions from Engineering

Q: An in-place machine with B = $120,000

An in-place machine with B = $120,000 was depreciated by MACRS over a 3-year period. The machine was sold for $60,000 at the end of year 2 when the company decided to import the item that required the...

Q: Last month, HighPower, which specializes in wind power plant design

Last month, HighPower, which specializes in wind power plant design and engineering, made a capital investment of $400,000 in physical simulation equipment that will be used for at least 5 years, then...

Q: Dupont is considering licensing a low liquid discharge (LLD) water

Dupont is considering licensing a low liquid discharge (LLD) water treatment system from a small company that developed the process and owns the license. Dupont can purchase a 1-year option for $100,0...

Q: Determine (a) the before-tax ROR, and

Determine (a) the before-tax ROR, and (b) approximate after-tax ROR for a project that has a first cost of $750,000, a salvage value of 25% of the first cost after 3 years, and annual (GI-OE) of $260,...

Q: Determine the required before-tax rate of return if an after

Determine the required before-tax rate of return if an after-tax return of 9% per year is expected and the state and local tax rates total 6%. The effective federal tax rate is 35%.

Q: An engineer who made an annual return of 8% after taxes

An engineer who made an annual return of 8% after taxes on a stock investment was told by his accountant that this is equivalent to a 12% per year before-tax return. What percentage of taxable income...

Q: Estimate the after-tax ROR for a project that has a

Estimate the after-tax ROR for a project that has a before-tax ROR of 24%. Assume the company is in the 35% tax bracket and it used MACRS depreciation for an asset that has a $27,000 salvage value.

Q: AAA car-buying service surveyed 1000 households to determine the number

AAA car-buying service surveyed 1000 households to determine the number of operating vehicles owned by residents at the same address. Use the results below to estimate the percentage of households tha...

Q: State what the following abbreviations stand for: NOI, GI,

State what the following abbreviations stand for: NOI, GI, Te, NOPAT, TI, R, OE, EBIT.

Q: Decker Scientific is considering an investment of $850,000 in

Decker Scientific is considering an investment of $850,000 in a new product line. The company will make the investment only if it will result in a rate of return of 20% per year or higher. If the reve...