How much net cash flow would be generated

Assignment Help Financial Management
Reference no: EM13763892

A firm purchased equipment three years ago for $23,097. Accumulated depreciation is $13,213, and the firm's tax rate is 30%. If the equipment is sold today for $20,519, how much net cash flow would be generated? Round your answer to the nearest whole dollar.

Reference no: EM13763892

Questions Cloud

Which alternative should you prefer if the interest rate : You can buy a car for $20,000, or you can lease it for 36 monthly payments of $350 each, with the first payment due immediately. At the end of the 36 months the car will be worth $10,000. Which alternative should you prefer if the interest rate (APR)..
How much should save each month : Sarah wants to go buy a house in Hawaii 15 years from now. She estimates she'll need $400,000 at that time to make this purchase. She plans to save each month at the end of the month for the next 15 years, and invest it at a rate of 8% a year, compou..
Balanced scorecard for strategic performance measurement : Find an article that discusses how a company used the Balanced Scorecard for strategic performance measurement. Summarize and provide an analysis of the article (3-4 pages). Remember to properly cite the source.
What is the companys current stock price : The XYZ Company just paid a dividend of D0 = $1.50 per share, and that dividend is expected to grow at a constant rate of 5.00% for the first 2 years and then 2% per year from year 3 till forever. The company's beta is 1.1, the expected market return..
How much net cash flow would be generated : A firm purchased equipment three years ago for $23,097. Accumulated depreciation is $13,213, and the firm's tax rate is 30%. If the equipment is sold today for $20,519, how much net cash flow would be generated? Round your answer to the nearest whole..
Repay the loan in two equal monthly instalments : Chatterton Company has obtained a $75,000 short-term loan from the bank with the understanding that Chatterton will repay the loan in two equal monthly instalments of $38,250 each. The first instalment is due after 30 days, and the second after 60 da..
Evaluating the possible replacement of equipment : A company is evaluating the possible replacement of equipment. New equipment would cost $106,975, and sales tax on the purchase would be 3%. Both the purchase price and sales tax would be capitalized. The old equipment had an original purchase price ..
Required rate of return on equity : The last dividend paid by Klein Company was $1.00. Klein's growth rate is expected to be a constant 5 percent for 2 years, after which dividends are expected to grow at a rate of 10 percent forever. Klein's required rate of return on equity (rs) is 1..
Assume the current or market or prevailing : The Kalodop Corporation issues 12% annual coupon bonds that pay $1,000 at maturity. These bonds mature in 15 yrs. What is the value (PV) or (Vb) of the bonds if the current or market or prevailing or going or YTM is 10%.

Reviews

Write a Review

Financial Management Questions & Answers

  In 1930 the highest paid player in major league baseball

1 in 1930 the highest paid player in major league baseball was babe ruth of the new york yankees with an annual salary

  Statements concerning financial risk

Which of the following statements concerning financial risk is false? Generically, financial risk is related to the probability of a return that is less than expected. If the returns on two investments move in unison (are perfectly positively correla..

  Other companies for synergies or grow internally

Should Microsoft increase growth by acquiring other companies for synergies or grow internally? Do they have the infrastructure to grow internally? If they get acquired by a competitor, how will the merger be integrated in regards to culture, overlap..

  Function of finance manager

Function of finance Manager and profit maximization does consider the impact on individual shareholder's EPS.

  What requirements would satisfy in order to qualify

ware that ACT is too small to obtain a bond rating, but in 2010 the Federal budget announced plans for a new scheme that will enable small bond issues (at least $50 million) to be listed on the ASX.

  Perform multiple regression with real financial data

Perform multiple regression with real financial data - estimate the Fama - French 3-factor model for a list of twenty stocks and interpret the regression output.

  Compute effective cost of not taking the cash discount

Compute the effective cost of not taking the cash discount under the following trade credit terms:

  Based on an internal rate of return analysis

RealTurf is considering purchasing an automatic sprinkler system for its sod farm by borrowing the entire $20,000 purchase price. The loan would be repaid with four equal annual payments at an interest rate of 12%/year.  Show the internal rate of ret..

  What are factors affecting the capital structure of company

Calculate the NPV and IRR for the project from the standpoint of the parent company. What are your recommendations for the proposal?

  Capital investment proposals

The division managers of Chester Construction Corporation submit capital investment proposals each year for evaluation at the corporate level. Typically, the total dollar amount requested by the divisional managers far exceeds the company’s capital i..

  Shares of common stock outstanding

At December 31, 2014, Sager Co. had 1,200,000 shares of common stock outstanding. In addition, Sager had 450,000 shares of preferred stock which were convertible into 750,000 shares of common stock. During 2015, Sager paid $900,000 cash dividends on ..

  An absolute measure of risk is provided

An absolute measure of risk is provided by the:

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