mante anco se ce for co mwo·and es semai property They have been using a Jan oft

Question

mante anco se ce for co mwo·and es semai property They have been using a Jan ofth. Od ting mover The folowing data are salable incremental operating cash flows Reard and Lnda Tronson operate a loca ee efdng mo er for me past several years and blevetat a to buy a one They uipud lkie to knou P* incremerta. rewart) cash flows assocated with replacemer 2. The old mower has a zero book value The new mower is expeched to last 5 years 4 The Thomsons wg tolow"year MACRS recovery penod for the new mower 5. Depreciable value of the new lan mower is $1,880 6 They are sue 40% tax fate The n? mower is expected to be more trinoert marerverat".and w. reare ess martenance Tian he previous modes ma nald tesut nted Ced Operang expenses of SS02 per year 8 The Thomsons will buy a maintenance contract that calls for annual payments of $124 for the expected Iife of the mower Creae an incem cash fow statement or the replacement of Rechand and Lindea's Jon Richard and Linda Thomson Incremental Operating Cash Flows Replacement of John Deere Riding Mower Data Table cia onmeicon located on the t right comer of data table below order to cooy its coments ito Savings om new and improved mower Less Anual maintenance cost Less Depreciation Savings oss) before taes Taves (40%) Savings 0oss) aier as ncremental operating cash ow Rounded Depreciation Percentages by Racovery Year Using MACRS for First Four Property Classes Round to the nearest doar) Enter any number in the edt felds and then conne to the nestqstin

Explanation / Answer

Saving from New and Improved Mover 502 Less Annual Maintenance Cost 124 Less Depreciation 1850*12% 222 Saving before Taxes 156 Taxes 40% 62 Savings after Taxes 94 Incremental operating Cash flow 94+222 316

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.