Calculate how many dollars of tax expense are saved

Assignment Help Financial Management

Reference no: EM131050927

A proposed new project has projected sales of $85K, costs of $43K, and depreciation expense of $3K. All figures are annual figures. The tax rate is 35%. Calculate annual operating CF for this project. a. $27,300 b. $14,700 c. $42,000 d. $28,350 10. calculate how many dollars of tax expense are “saved” each year because of the depreciation expense. a. $1,050 b. $1,950 c. $3,000 d. $1,000

Reference no: EM131050927

Questions Cloud

Find the amount accumulated in the increasing annuity : Find the amount accumulated in the increasing annuity of $2,000 deposited quarterly for 20 years at 8%/year.

Capital Asset Pricing Model and WACC : (Capital Asset Pricing Model and WACC) You have the following information for the company Exxon. The “beta” coefficient for Exxon is 1.25 based on the past information. The 30-day T-bill rate is 1.5%, the 5-year average market return of (say, S&P 500..

What is the beta of a security where the expected return : What is the beta of a security where the expected return is double that of the stock market, there is no correlation coefficient relative to the U.S. stock market, and the standard deviation of the stock market is .18? 0.00 2.00 1.00 1.25

Considering the purchase of corporation bonds : Two investors are considering the purchase of Corporation LMQ bonds. The bonds are selling at their par value of$1,000 with a coupon rate of 9%. Investor A decides to buy the bonds and investor B does not buy the bonds. Why?

Calculate how many dollars of tax expense are saved : A proposed new project has projected sales of $85K, costs of $43K, and depreciation expense of $3K. All figures are annual figures. The tax rate is 35%. Calculate annual operating CF for this project. a. $27,300 b. $14,700 c. $42,000 d. $28,350 10. c..

Compare cash and accrual accounting methodology : Describe the three types of project risks and detail the situation in which each type is most relevant when making a capital budgeting decision. Include the effect of correlation. Compare and contrast cash accounting methodology and accrual accountin..

What is the best estimate of these bonds remaining life : Lloyd Corporation's 12% coupon rate, semi-annual payment, $1,000 par value bonds, which mature in 25 years, are callable 6 years from today at $1,025. They sell at a price of $1,278.56, and the yield curve is flat. Assume that interest rates are expe..

What interest rate would the investment have to yield : Stanley Roper has $2,400 that he is looking to invest. His brother approached him with an investment opportunity that could give Patrick $4,600 in 4 years. What interest rate would the investment have to yield in order for Stanley’s brother to delive..

Money has different values based on time : Money has different values based on time. Money in your pocket has a current value, but money owed to you has a varying value based on how sure it is that you will receive it and when. It is possible to estimate its value. In this assignment, you wil..

User Account

All Pages