The Queen Steel company is considering two different wire soldering machines. Machine1 has an initial cost of $100,000, costs $20,000 to set up and is expected to be sold for $20,000 after 10 years Machin 2 has an initial cost of $ 80,000, costs $ 30,000 to set up and is expected to be sold for $ 10,000 after 10 years. Both machine would be depreciated over 10 years using straight line depreciation. Queen has a tax rate of 30%.
a) what are the cash flows related to the acquisition of each machine?
b) what are the cash flows related to the disposition of each machine?
The Queen Steel company is considering two different wire soldering machines. Machine1 has an initial cost of $100,000,
-
answerhappygod
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am