The Rumpel Felt Company purchased a felt press last year at a cost of $15,000. The division manager reports that for $13

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

The Rumpel Felt Company purchased a felt press last year at a cost of $15,000. The division manager reports that for $13

Post by answerhappygod »

The Rumpel Felt Company Purchased A Felt Press Last Year At A Cost Of 15 000 The Division Manager Reports That For 13 1
The Rumpel Felt Company Purchased A Felt Press Last Year At A Cost Of 15 000 The Division Manager Reports That For 13 1 (84.46 KiB) Viewed 15 times
The Rumpel Felt Company purchased a felt press last year at a cost of $15,000. The division manager reports that for $13,000 (including installation), a new felt press can be bought. Both machines are in Class 43 with a 30% depreciation rate. The old machine's current market value is $12,000. The new press will be used for two years and then sold for $3,500. If the old press is not replaced, then it could be sold for $3,000 in two years. What is the present value of incremental tax shields in the terminal year? The tax rate is 40% and Rumpel's cost of capital is 10%. -$1,143 $236 $29 O $600
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”