### Buying a new asset at a cost

Assignment Help Finance Basics
##### Reference no: EM131435197

Kendrick Duckworth has entrusted financial analyst Flower Belle Lee with the evaluation of a project that involves buying a new asset at a cost of \$90,000. The asset falls under the MACRS three-year class and will generate the following revenue stream:

End of Year     1               2             3            4

Revenues (\$)50,000     30,000    20,000    20,000

The asset has a resale value of \$10,000 at the end of the fourth year. Duckworth's discount rate is 11 percent. The company has an income tax rate of 30 percent. Should Flower recommend purchase of the asset?

#### Assignment on implementing the budget

Write a three to four (3-4) page paper addressing the criteria below. (Note: Change the title of the report to reflect the selected agency's name and the years to 2013-2014.

#### Determine the future value of a target venture

Determine the future value of a target venture which has net income expected to be \$50,000 at the end of four years from now. A comparable firm currently has a stock price

#### Calculate npv and irr of proposed investment

The plane falls into the MACRS depreciation class for seven-year assets. GSHAI's combined federal and state income tax rate is 35 percent, and the company's weighted average

#### Which is worth more a us dollar or a canadian dollar

Suppose the spot exchange rate for the Canadian dollar is Can \$1.09 and the six-month forward rate is Can \$1.11. a. Which is worth more, a U.S. dollar or a Canadian dollar?

#### Determine taxable income and their tax liability

Carrie and Stephen have gross salary and wages of \$76,000 in 2016 and file a joint return. They have \$27,150 of total allowable deductions and a \$240 child care credit. Dete

#### Searching for a job in finance

Imagine you have completed your bachelor's degree at Strayer and you are searching for a job in finance, accounting or business. Using various employment websites (i.e. Mons

#### What is the value of the stock

A stock will pay dividends of \$3, \$5, and \$9 over the next three years, and then increase dividends at a rate of 9% afterwards. Its required rate of return is 20%. What is t

#### Quoted nine-month eurodollar futures price

Calculate the price of a cap on the 90-day LIBOR rate in nine months' time when the principal amount is \$1,000. Use Black's model with LIBOR discounting and the following i

### Write a Review

#### 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!