A medical diagnostic laboratory plans to spend $1,900,000 on equipment to provide pathology services. The equipment will be depreciated using the MACRS method and a 5-year recovery period. Gross income is expected to be $750,000 in year 1 and increase by $30,000 each year. Annual operating expenses are expected to be $150,000 in year 1 and increase by $20,000 each year. The company’s combined marginal tax rate is 39%. The company uses a study period of 6 years for these purchases and plans to keep the equipment indefinitely. (Round all dollar answers to nearest dollar.) For Year 2, what is the cash flow before taxes, CFBT2? $ For Year 2, what is the deprecation rate, α2? (four decimals) For Year 2, what is the depreciation charge, D2? $ For Year 2, what is the taxable income, TI2? $ For Year 2, what is the amount of taxes, Taxes2? $ For Year 2, what is the cash flow after taxes, CFAT2? $ Refer to the CFAT summary below.  Use the CFAT that you calculated in part (f) for year 2.  What is the after-tax Rate of Return over the study period? % (one decimal) Year CFAT,$ 0 −1,900,000 1 514,200 2 CFAT2 from part (f) 3 520,472 4 469,663 5 475,763 6 439,182   h. If their MARR is 14%, should the lab invest in this equipment? (YES or NO)

QID . Recently, Arizona State University’s Polytechnic campus placed third in the 22nd RoboSub competition. Fifty-four teams representing Brazil, Canada, China, Egypt, India, Japan, Norway, Poland, Russia, Singapore, Thailand, Turkey and the United States of America and territories participated in the competition, which was held in San Diego, California. The prize for third place was $. If the team spent $ for parts (at time 0) and the project took years, what annual rate of return did the team make? (Answer as a percentage, round to one decimal place.)

An asset that is book depreciated over a 5-year period by the straight‑line method has BV4 = $36,000 with a depreciation charge of $26,000 per year. (Round answers to nearest dollar.) What is the first cost of the asset? $ What is the assumed salvage value? $

Two years ago, Williams Corp. purchased tooling that has a 3-year recovery period. The depreciation charge by the MACRS method for year 2 is $53,340. What was the first cost of the tooling? What was the depreciation charge for year 1? What is the book value of the tooling at the end of year 2?

One possible rate of return for the following cash flow series is 10% per year. Year Net Cash Flow, $ 0 −1,000 1 3,900 2 −5,030 3 2,145 4 0

A company must install one of two systems to reduce costs.  Both systems have useful lives of 5 years and no salvage value.  The cash flows are summarized below. Year System A NCF, $ System C NCF, $ 0 −10,000 −13,500 1 3,000 3,000 2 3,000 3,500 3 3,000 4,000 4 3,000 4,500 5 3,000 5,000 IRR 15.2% 13.4% Assume the MARR is 8%.  Which project should be selected on the basis of the IRR criterion?

A company must install one of two systems to reduce costs.  Both systems have useful lives of 5 years and no salvage value.  The cash flows are summarized below. Year System A NCF, $ System C NCF, $ 0 −10,000 −13,500 1 3,000 3,000 2 3,000 3,500 3 3,000 4,000 4 3,000 4,500 5 3,000 5,000 IRR 15.2% 13.4% Assume the MARR is 12%.  Which project should be selected on the basis of the IRR criterion?

A local company purchased new manufacturing equipment for $800,000.  The equipment has an anticipated life of 10 years and a salvage value of $10,000. Using straight-line (SL) depreciation, what is the depreciation rate for year 4? (two decimals) Using straight-line (SL) depreciation, what is the deprecation charge for year 4? $ (nearest dollar) Using straight-line (SL) depreciation, what is the book value at the end of year 4? $ (nearest dollar)

According to Nagel, which of the following is true if determinism is true for human actions?

One of the claims Stace relies on to prove his main point about free will is