Examlex

Solved

Tabletop Ranches,Inc

question 64

Essay

Tabletop Ranches,Inc.is considering the purchase of a new helicopter for $325,000.The firm's old helicopter has a book value of $85,000,but can only be sold for $60,000.
The new helicopter will be subject to 25% CCA.It is expected to save $62,000 for 7 years after taxes through reduced fuel and maintenance expenses.Tabletop Ranch is in the 40% tax bracket and has a 12% cost of capital.
Calculate the net present value of the helicopter purchase and state whether or not the firm should buy it.


Definitions:

Chromosome 11

One of the 23 pairs of chromosomes in humans, containing genes important for immune function, cell cycle regulation, and various metabolic processes.

Mutation

Change in the number or kinds of nucleotides in the DNA of a gene.

Leukocytes

White blood cells that are part of the immune system, defending the body against infection and disease.

Formed Elements

The cells and cell fragments in the blood, such as red blood cells, white blood cells, and platelets, that are critical for blood clotting, oxygen transport, and immune defense.

Related Questions