CD industries_replacement project.pptx

CD industries_replacement project.pptx - CD INDUSTRIES CD...

This preview shows page 1 out of 1 page.

CD INDUSTRIES CD Industries owns Machine A that was purchased 3 years ago for $550,000. At the same time, XY spent $30,000 to purchase a piece of land Z for purposes unrelated to usage of Machine A. Machine A belongs to the CCA Class 8, with a CCA rate of 20%. Machine A may star operational for 12 more years, at which time its resale value will be $75,000, but it could be sold now for $130,000 If CD buys a new machine now (machine B), its annual before-tax revenues will decrease by $20,000 and annual before-tax expenses will decline by $80,000 Machine B would trigger a $10,000 decrease in inventories and a $4,000 decrease in accounts receivables. Seventy percent (70%) of the decrease in accounts receivable will be reversed at the
Image of page 1
  • Winter '14
  • Lennox
  • Balance Sheet, Machine A, CD INDUSTRIES, CCA Class 8

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern