User Account

All Pages

After-tax cash flow effect from deprecation

Assignment Help Finance Basics
Reference no: EM131180502

Emily Home Catering (EHC) is considering switching from its old food maker to a new Wonder Food Maker. Both food makers will remain useful for the next 10 years, but the new food maker will generate a depreciation expense of $5,000 per year, while the old food maker will generate a depreciation expense of $4,000 per year. What is the after-tax cash flow effect from deprecation of switching to the new food maker for EHC if the company's tax rate is 30 percent and the correct discount rate is 12 percent?

Reference no: EM131180502

Questions Cloud

Why you have a negative evaluation of the theory area : Discuss why you have a negative evaluation of the theory area. In addition, state what you believe the theory effectively accomplishes. Discuss what you would write to the FASB if you had the opportunity to suggest a modification, etc., of the theo..
Determine the average velocity of the particle : During a hard sneeze, your eyes might shut for 0.38 s. If you are driving a car at 96 km/h during such a sneeze, how far does the car move during that time?
Money for reinvestment and growth purposes : The newly elected Ceo of Health Concepts wants to reduce the dividends paid out to shareholders in order to keep more money in the money for reinvestment and growth purposes. What is the dividend per share
Finds the break even volume : Finds the break-even volume at a price of $10 to be 10,000 units, should it price its product at $10? Why or why not?
After-tax cash flow effect from deprecation : What is the after-tax cash flow effect from deprecation of switching to the new food maker for EHC if the company's tax rate is 30 percent and the correct discount rate is 12 percent?
Practical application of financial management : The research paper in this course gives you the opportunity to study an important healthcare finance problem or challenge, analyze it in depth, and present your findings in an APA-formatted paper. I was thinking of writing it on "Cuts in Medicaid..
Would residents of the larger cities come to the events : How would they determine what events to bring to the center? How would they determine the "draw" to the events? Would residents of the larger cities come to the events?
What are the major benefits of credit to buyers : What are the major benefits of credit to buyers? - What are its major benefits to sellers?
Owners of lux company make additional cash investment : 1. Lux wrote off $5,000 of accounts receivable as uncollectible. 2. A bank notifies Lux that a customer's check for $411 is returned marked insufficient funds. The customer is bankrupt. 3. The owners of Lux Company make additional cash investment of ..

Reviews

Write a Review

Finance Basics Questions & Answers

  The price of a 1-year 093-strike european call on the euro

suppose that the exchange rate is 0.95 usd per euro and that the euro-denominated continuously compounded interest

  The dividends are anticipated to maintain an 8 percent

the next dividend payment by xyz co. will be 3 per share. the dividends are anticipated to maintain an 8 percent

  Qualcomms 5-year bonds yield 700 and 5-year t-bonds yield

qualcomms 5-year bonds yield 7.00 and 5-year t-bonds yield 5.15. the real risk-free rate is r 3.0 the inflation

  What inflation rate is expected during year 2

what is the one-year interest rate that is expected for Year 2? What inflation rate is expected during Year 2?

  What is the mark-to-market profit or loss in dollars that

What will be BHP’s operating profit from copper next year if copper prices are described as in part (a), and the firm enters into supply contracts as in part (b) for only 50% of its total output?

  Relative performance analysis

General Electric Relative performance analysis, compute the average five-year average return in your industry.

  An important source of temporary cash is trade credit

an important source of temporary cash is trade credit which does not actually bring in cash but instead slows its

  A firm that makes 90 of its sales on credit and 10 for cash

1.which of the followingstatements is correct?a.a firm that makes 90 of its sales on credit and 10 for cash is growing

  Qualities of effective corporate governance

Evaluate the qualities of effective corporate governance. Use technology and information resources to research issues in advanced financial management.

  Research the history of saturn and gm decision

Throughout its existence, Saturn has never turned a profit for General Motors. Research the history of Saturn and GM's decision to continue funding it.

  Fbruary march and april of 6000 5000 5550 and 2000

a company is using the high-low method and has determined the following production for the months of january february

  What are the ceos and shareholders

What are the CEOs and shareholders? What alternatives and solutions would you suggest to solve this ethical dilemma?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd