### Conway marginal tax rate

Assignment Help Finance Basics
##### Reference no: EM131402396

Conway Inc. is considering the purchase of new machine for \$100,000 that will increase sales by \$55,000

Annually. But the cost (Not including depreciation) will increase only by \$5000 annually. Conway will depreciate the machine t zero dollars salvage value according to the following schedule: 40% first year, 40% second year, and 20% third year, and expected no resale value for the machine at the end of its 3 year operating life. Conway's marginal tax rate is 20%, and its uses a 15% cost of capital to evaluate projects of this type.

Find the NPV of the project

#### What is the present value of a perpetual stream

What is the present value of a perpetual stream of cash flows that pays \$6,500at the end of year one and the annual cash flows grow at a rate of 4% per year indefinitely, Wh

#### What must lisa annual deposit

Lisa Simpson wants to have \$1,100,000in 50years by making equal annual end-of-the-year deposits into a tax-deferred account paying 11.75 percent annually. What must Lisa's an

#### Estimating the accumulative depreciation

Gabriels packagin company currently has sales of \$5,000,000 per year. Cost of good solds amounts to 80% of net sales. The firm, wich is in the 30% tax bracket has \$ 500,000

#### What is the current price of the bonds

One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 7.5% annual coupon bonds at their par value of \$1000. Today, the market interest rate on these bonds is 5/5

#### What is the operating cash flow

Daniel's Market has sales of \$43,800, costs of \$40,400, depreciation expense of \$2,500, and interest expense of \$1,100. If the tax rate is 34 percent, what is the operating

#### How would accrued compensation going up

How would accrued compensation going up by \$100 affect the financial statements? How would inventory going up by \$100 affect the financial statements assuming you pay cash for

#### Annual installments that include both the principal

On December 31, Beth Klemkosky bought a yacht for \$120,000. She paid \$20,000 down and agreed to pay the balance in 11 equal annual installments that include both the princip

#### Financial markets money market portfolio dilemma

Financial Markets money Market Portfolio Dilemma As the treasurer of a , one of your jobs is to maintain invest in liquid securities such as Treasury securities and commer