{"id":119107,"date":"2021-01-19T11:23:19","date_gmt":"2021-01-19T11:23:19","guid":{"rendered":"https:\/\/essayparlour.com\/custom-essays\/?p=119107"},"modified":"2021-01-19T11:23:19","modified_gmt":"2021-01-19T11:23:19","slug":"order-the-answer-to-uncle-elmo-is-contemplating-a-10000-investment","status":"publish","type":"post","link":"https:\/\/essayparlour.com\/custom-essays\/business-economics-2\/order-the-answer-to-uncle-elmo-is-contemplating-a-10000-investment\/","title":{"rendered":"Order the answer to: Uncle Elmo is contemplating a $10,000 investment"},"content":{"rendered":"<table style = 'table-striped table-bordered table-hover' responsive='true'>\n<tr>\n<th>Question<\/th>\n<td>Uncle Elmo is contemplating a $10,000 investment in a methane gas generator. He estimates his gross income would be $2000 the first year and increase by $200 each year over the next 10years. His expenses of $200 the first year would increase by $200 each year over the next 10 years. He would depreciate the generator by MACRS  , assuming a 7-year property class. A l0-year-old methane generator has no market value. The income tax rate is 40%. (Remember that recaptured   is taxed at the same 40% rate). (a) Construct the after-tax cash flow for the 10 year project life. (b) Determine the after-tax rate of return on this investment. Uncle Elmo thinks it should be at least 8%. (c) If Uncle Elmo could sell the generator for $7000 at the end of the fifth year, would his rate of return be better than if he kept the generator for 10years? You don&#8217;t have to actually find the rate of return, Just do enough calculations to see whether it is higher than that of part (b).<\/td>\n<\/tr>\n<tr>\n<th>Subject<\/th>\n<td>business-economics<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Question<br \/>\nUncle Elmo is contemplating a $10,000 investment in a methane gas generator. He estimates his gross income would be $2000 the first year and increase by $200 each year over the next 10years. His expenses of $200 the first year would increase <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43],"tags":[],"class_list":["post-119107","post","type-post","status-publish","format-standard","hentry","category-business-economics-2"],"_links":{"self":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/119107","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/comments?post=119107"}],"version-history":[{"count":1,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/119107\/revisions"}],"predecessor-version":[{"id":119108,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/119107\/revisions\/119108"}],"wp:attachment":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/media?parent=119107"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/categories?post=119107"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/tags?post=119107"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}