Case Study # 4 Excel Submission – Capital Budgeting Comprehensive Problem Pinnacle Custom Home Builders purchased a 40 foot articulating boom lift three years ago for $50,000. The equipment has been depreciated under the 5-year MACRS schedule (20%, 32%, 19%, 12%, 12% & 5%). The old equipment can be sold for $33,000. Pinnacle is considering the purchase of a new 60 foot articulating boom lift that would allow the to complete nearly all of its construction projects without the need for costly rental company lifts. The new lift could be purchased for $105,000 and would also fall under the 5-year MACRS depreciation schedule. Assume the old and new equipment would provide the following operating gains (or losses) over the next six years. New Equipment Old Equipment $40,000 38,000 35,000 30,000 25,000 22,500 $25,000 16,000 9,000 8,000 6,000 5,000 2. 4. 5. 6.. The firm has a 28 percent tax rate and a 7 percent cost of capital. Should the new equipment be purchased to replace the old equipment? Briefly justify your answer. 123 456

Case Study # 4 Excel Submission – Capital Budgeting Comprehensive Problem Pinnacle Custom Home Builders purchased a 40 foot articulating boom lift three years ago for $50,000. The equipment has been depreciated under the 5-year MACRS schedule (20%, 32%, 19%, 12%, 12% & 5%). The old equipment can be sold for $33,000. Pinnacle is considering the purchase of a new 60 foot articulating boom lift that would allow the to complete nearly all of its construction projects without the need for costly rental company lifts. The new lift could be purchased for $105,000 and would also fall under the 5-year MACRS depreciation schedule. Assume the old and new equipment would provide the following operating gains (or losses) over the next six years. New Equipment Old Equipment $40,000 38,000 35,000 30,000 25,000 22,500 $25,000 16,000 9,000 8,000 6,000 5,000 2. 4. 5. 6.. The firm has a 28 percent tax rate and a 7 percent cost of capital. Should the new equipment be purchased to replace the old equipment? Briefly justify your answer. 123 456

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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O X A WA Probability 1- Intro to Probabi X B5 Probability 1: Introduction to Prol X * O -> webassign.net/web/Student/Assignment-Responses/submit?dep3D28685826&tags%=Dauto. <* MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER Shipping constitutes a large part of the budget for online retailers. One such retailer ships fragile items that occasionally get broken and have to be replaced/re-shipped. Historically, 8% of these items have gotten broken during shipping. (a)If an item is shipped, what is the probability that it does not get broken? In other words, what is P(not broken)? Express your answer as a decimal rounded to two decimal places. (b) If the retailer ships 4 separate items, what is the probability that none will be broken during shipping? Express your answer as a decimal rounded to three decimal places. Submit Answer 7 O 10:29 Ili
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X SAM.gov | Home First Financial Bank Question 1- Week 5: X devry: Cost Managem X -Portal X M Inbox (17) - princessp: X X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com... A to Homework i Saved Help Save & Exit Check The following information is available for Brownstone Products Company for the month of July: Master Actual Budget Units 3,500 4,000 Sales revenue $ 54,300 $ 60,000 Variable manufacturing costs 10,000 16,000 Fixed manufacturing costs 13,000 14,000 Variable selling and administrative expenses 6,500 8,000 Fixed selling and administrative expenses 8,000 9,100 Required: 1. What was the master budget variance for July? Was this variance favorable or unfavorable? es 2. Compute the July sales volume variance and the flexible-budget variance for the month, both in terms of contribution margin and in terms of operating income. 4. Prepare pro-forma budgets for activities within its relevant range of…