LoTech Welding can purchase a machine for $175,000 and depreciate it as 5-year MACRS property. Annual maintenance would be$9800, and its salvage value after 8 years is $15,000. The machine can also be leased for$35,000 per year on an “all costs” inclusive lease (maintenance costs included). Lease payments are due at the beginning of each year, and they are tax deductible. The firm’s combined tax rate for state and federal income taxes is 40%. If the firm’s after-tax interest rate is 9%, which alternative has the lower EAC and by how much

In this exercise we suggest the use of technology. Round all answers to two decimal places. Maximize p=x-2y+z-2w+v subject to

$$\begin{array}{l}{x+y \leq 1.1} \\ {y+z \leq 2.2} \\ {z+w \leq 3.3} \\ {w+v \leq 4.4} \\ {x \geq 0, y \geq 0, z \geq 0, w \geq 0, v \geq 0.}\end{array}$$

Write each expression as repeated multiplication. Then simplify the expression.

$$1^7$$

Graph the equation $x^{2}+y^{2}=9$. Then draw a segment from (0,5) tangent to the circle. Find the length of the segmenL

Determine whether each number is perfect, deficient, or abundant. 260

A decision has been made to perform certain repairs on the outlet works of a small dam. For a particular 36-inch gate valve, there are three available Alternatives: A. Leave the valve as it is. B. Repair the valve. C. Replace the valve. If the valve is left as it is, the probability of a failure of valve seats, over the life of the project, is 60%; the probability of failure of the valve stem is 50%; and of failure of the valve body is 40%. If the valve is repaired, the probability of a failure of the seats, over the life of the project is 40%; of failure of the valve stem is 30%; and of failure of the valve body is 20%. If the valve is replaced, the probability of a failure of the seats, over the life of the project, is 30%; of failure of the stem is 20%; and of failure of the body is 10%. The present worth of cost of future repairs and service disruption of failure of the seats is $10,000; the present worth of cost of a failure of the stem is$20,000; the present worth of cost of a failure of the body is $30,000; The cost of repairing the valve now is$10,000; and of replacing it is $20,000. If the criterion is to minimize expected costs, which alternative is best?

Zeon, a large, profitable corporation, is considering adding some automatic equipment to its production facilities. An investment of $\$ 120,000$ will produce an annual benefit of $\$ 40,000$. If the firm uses $60 \%$ bonus depreciation with the balance using 7-year MACRS depreciation, an 8-year useful life, and $\$ 12,000$ salvage value, will it obtain the desired $12 \%$ after-tax rate of return? Assume that the equipment can be sold for its $\$ 12,000$ salvage value at the end of the 8 years. Also assume a $28 \%$ income tax rate for state and federal taxes combined.

Use a calculator to find each value. Round your answers to the nearest thousandth. $\sec \left(-\frac{3 \pi}{2}\right)$

A company buys a machine for 175,000 dollars. During the next 5 years, the machine will depreciate at a rate of 30 precents per year. (That is, at the end of each year, the depreciated value will be 70 precents of what it was at the beginning of the year.)

Write an expression for the value of the machine after $n$ years.

y varies directly with x. If x=2 when y=4, find y when x=5.

An automaker is buying some special tools for $100,000. The tools are being depreciated by double declining balance depreciation using a 4-year depreciable life and a$6250 salvage value. It is expected the tools will actually be kept in service for 6 years and then sold for $6250. The before-tax benefit of owning the tools is as follows:

$$\begin{matrix} \text{Year} & \text{Before-Tax Cash Flow}\\ \text{1} & \text{\$30,000}\\ \text{2} & \text{30,000}\\ \text{3} & \text{35,000}\\ \text{4} & \text{40,000}\\ \text{5} & \text{10,000}\\ \text{6} & \text{10,000}\\ \text{ } & \text{6,250 Selling price}\\ \end{matrix}$$

Compute the after-tax rate of return for this investment situation, assuming a 46% incremental tax rat

From 2000 to 2013, the value of the U.S. dollar has been shrinking. The value of the U.S. dollar over time $(v(t))$ can be modeled by the following formula; $v(t)=1.36(0.9758)^{t}$, where t is the number of years since 2000 a. How much was a dollar worth In the year 2005? b. Graph the points $(t, v(t))$ for integer values of $0 \leq t \leq 14$. c. Estimate the year in which the value of the dollar fell below $1.00.

Find each product.

$$\left( 7 x ^ { 3 } + 5 \right) \left( x ^ { 2 } - 2 \right)$$

During a 2-hour period on January 12, 1911, the temperature in Rapid City, South Dakota, dropped from a high of

$$49 ^ { \circ } \mathrm { F }$$

to a low of

$$- 13 ^ { \circ } \mathrm { F }$$

. What was the range of the temperatures during this period?