+1-415-670-9189
info@expertsmind.com
What is the after-tax salvage value
Course:- Financial Management
Reference No.:- EM131059075





Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Management

Your firm needs a computerized machine tool lathe which costs $49,000 and requires $11,900 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 34 percent and a discount rate of 13 percent. If the lathe can be sold for $4,900 at the end of year 3, what is the after-tax salvage value? (Round your answer to 2 decimal places.)




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
You are a shareholder in a "C" corporation. This corporation earns $5 per share before taxes. After it has paid taxes, it will distribute the remainder of its earnings to you
In a slow year, Deutsche Burgers will produce 3.5 million hamburgers at a total cost of $4.6 million. In a good year, it can produce 4.3 million hamburgers at a total cost of
Schwadin’s Shawarma Shops (S3 ) is a new restaurant chain in its early stages. The founders have great plans, but need to test their restaurant design, their recipes, and thei
Mojito Mint Company has a debt–equity ratio of .20. The required return on the company’s unlevered equity is 13 percent, and the pretax cost of the firm’s debt is 8.7 percent.
Consider a firm with the following cash flows as of year 0: The Sales of the company is expected to grow at a 12% rate over the next two years, and at a constant rate of 6% an
For the year ending December 31, 2016, Micron Corporation had income from continuing operations before taxes of $1,320,000 before considering the following transactions and ev
In “The False Income-Inequality Narrative,” Jason L. Riley argues that fairness is not about getting money from more productive persons and giving it to less productive person
Consider the production cost information for Mama Italiano Sauce given below: Mama Italian Sauce Production Cost Budget April 2008 Production - Jars of sauce 20,000 Ingredient