The equipment is five-year property for MACRS

Assignment Help Financial Management
Reference no: EM13947408

You own some equipment that you purchased four years ago at a cost of $287,000. The equipment is five-year property for MACRS. The MACRS rates are .2, .32, .192, .1152, .1152, .0576, for years 1 to 6, respectively. You are considering selling the equipment today for $99,000. Which one of the following statements is correct if your tax rate is 35 percent?

The tax due on the sale is $17,357.76.

The book value today is $49,406.40.

The accumulated depreciation to date is $270,468.80.

The taxable amount on the sale is $49,593.60.

The aftertax salvage value is $81,707.76.

Reference no: EM13947408

What is the project expected npv and standard deviation

Shao Industries is considering a proposed project for its capital budget. The company estimates that the project's NPV is $12 million. This estimate assumes that the economy a

Retained earnings in determining the firm cost of capital

The Yo-Yo corporation tries to determine the appropriate cost for retained earnings to be used in capital budgeting analysis. The firm's beta is 0.93. The rate on six-month T-

Were the surveillance methods used by the fbi effective

In August 2001, it was discovered the McDonald’s Monopoly game was a fraud. Simon Marketing, which ran the game on behalf of McDonald’s, was responsible for the fraud. How did

What does the market believe will be the stocks price

Crisp Cookware's common stock is expected to pay a dividend of $1.75 a share at the end of this year (D1 = $1.75); its beta is 0.75; the risk-free rate is 4.4%; and the market

Serve to reduce the bank''s interest rate risk

Suppose that your bank currently operates with a DGAP of 2.2 years. Which of the following will serve to reduce the bank's interest rate risk? a. Issue a one year zero coupon

Net working capital requirement

Two years ago our company bought equipment for $1 million that has been depreciated straight line over a five-year life. Key points to consider: The equipment has a current ma

What is their break-even level of operating income

Home Depot Inc. (HD) had 1.70 billion shares of common stock outstanding in 2008, whereas Lowes Companies,. Inc. (LOW) had 1.46 billion shares outstanding. Assuming Home Depot

Discuss how we actually derive a budget

Let's discuss how we actually derive a budget. Discuss the five basic steps of budgeting and how each are determined. What are some of the difficulties that can arise in this


Write a Review

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