Equipment after-tax salvage value

Assignment Help Finance Basics
Reference no: EM131041576

Liberty Services is now at the end of the final year of a project. The equipment originally cost $22,500, of which 75% has been depreciated. The firm can sell the used equipment today for $6,000, and its tax rate is 40%. What is the equipment's after-tax salvage value for use in a capital budgeting analysis? Note that if the equipment's final market value is less than its book value, the firm will receive a tax credit as a result of the sale.

Reference no: EM131041576

Questions Cloud

Prepare a level 0 logical data flow diagram : ACCT 20072: Practical and written assessment - Prepare a level 0 logical data flow diagram (DFD) for the recording payments process at Electro plus Ltd.
Global perspectives on indigenous peoples : This assignment is an opportunity for you to reflect on the material we have covered this semester, but you must take the final module, "Global Perspectives on Indigenous Peoples," into careful consideration.
Improve business operations by changing communication system : In this third assignment you now need to address how these two organisations can improve business operations by changing their communication systems and network elements and by adopting new network technologies and/or improvements to management th..
How css is used to create the layout for a web page : Describe in detail how JavaScript can be used for input validation on the client side. Explain in detail how CSS is used to create the layout for a web page.
Equipment after-tax salvage value : What is the equipment's after-tax salvage value for use in a capital budgeting analysis? Note that if the equipment's final market value is less than its book value, the firm will receive a tax credit as a result of the sale.
Write a recursive function that takes in a list : For this part of the homework, you will write a recursive function that takes in a list of positive integers as a parameter, and prints out the maximum value in that list. Your recursive function should be called maxInt().
Prepare journal entries for walkie ltd : Determine the balance of any current and deferred tax assets and liabilities as at 30 June 2015, in accordance with AASB 112 - Prepare journal entries for Walkie Ltd between 1 July 2013 and 1 January 2017to record the above. Show narrations and al..
Develop a web site to support the mrsl : Most simply put, you will develop a web site to support the Murfreesboro Recreational Soccer League (MRSL) operation. You will build this web using HTML 5, CSS 3, Tables, Images and Forms
Do you think same sex marriage should be legal : The US Supreme Court has ruled that same sex marriage is legal nationwide since June 6, 2015. However, the new law does not stop the battles of gay marriage across America. Do you think same sex marriage should be legal? Please state your own posi..

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute degree of operating, financial and combined leverage

The Sosa Company produces baseball gloves. The firm's income statement for 2004 is as follows

  If the price of the stock increases to 50 at expiration

the following questions appeared in past cfa level i examinations.a. which one of the following comparative statements

  Argumentative essays section in critical thinking

Review the Writing Argumentative Essays section in Critical Thinking Write an argumentative paper of no more than 750 words that demonstrates why globalization is good or not good for a business. The paper should define the term good, and should i..

  What is the speculative premium

The Burma Hat Company's warrant is trading for $10.20. The warrant carries the option to purchase two shares of common stock for $48. What is the speculative premium if the stock price is $51.30?

  Create a decision tree to help expando make the best

expando inc. is considering the possibility of building an additional factory that would produce a new addition to its

  Jensens travel agency has 11 percent preferred stock

jensens travel agency has 11 percent preferred stock outstanding that is currently selling for 42 a share. the market

  Discuss two factors that may affect a person''s credit score

Discuss two factors that may affect a person's credit score and apply the notion of moral hazard to your response.

  Do you think us equity markets are cleaner

Government bailouts/nationalizations and Madoff scandals, do you think U.S. equity markets are cleaner and more reliable than stock markets in the rest of the world?

  Discuss any involvement of the sec

Identify and briefly discuss the role of the parties that were involved as perpetrators, accomplices, victims, tipsters, observers, etc. (preferably in a chart or illustration). [Include Jeffry Picower];

  What are the pros and cons of increasing dividends

What are the pros and cons of increasing dividends? or paying their shareholders higher divdends?

  Calculate the present value of this stream of income at a

this part of the assignments tests your ability to calculate present value.a. suppose your bank account will be worth

  One-year treasury bills currently earn 550 percent you

one-year treasury bills currently earn 5.50 percent. you expect that one year from now one-year treasury bill rates

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!

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