Opposite project - net present value, Financial Management

A company has the opportunity to sell an old machine. The machine is fully depreciated to a zero book value but could be sold for $5,000. If the company did not sell the machine, it would be able to use it for four more years and save $3000 in pretax costs in each of those years. The company has a 10% cost of capital and is in the 35% marginal tax bracket. Calculate net present value and internal rate of return.
Posted Date: 11/4/2012 8:53:08 PM | Location : United States







Related Discussions:- Opposite project - net present value, Assignment Help, Ask Question on Opposite project - net present value, Get Answer, Expert's Help, Opposite project - net present value Discussions

Write discussion on Opposite project - net present value
Your posts are moderated
Related Questions
evaluate the importance of leverage in financial management of a small scale company

Why do you think the empirical studies as regards factors influencing equity returns mainly showed that domestic factors were more significant than international factors, and, seco

Option-Adjusted Spread (OAS) The prime objective of an investor is to buy securities which have values greater than their market prices. The discussion made on the above valuat

Interest Rates The payment borrowers make for the use of the funds that they borrow and the payment that lenders demand for the use of the funds they lend (termed interest ) w

A portfolio manager would never prefer to make investment decision based on just one set of assumptions. Instead, he would evaluate the outcome of the selected st

1. Capital Asset Pricing Model and Multinational Corporations Why do some critics say the CAPM model is not appropriate in an international setting? Please explain a way that

Q. What do you mean by Letter of Credit? A letter of credit is an arrangement whereby a bank helps its customer to obtain credit from its (customer's) suppliers. When a bank op

What are the coupon bonds security instruments? Coupon bonds are contractual agreements by the borrowers to make regular payments (known as coupons or interest) until a specifi

Explain about the investment decision- financial management The investment decision relates to selection of assets in which funds would be invested by a firm. Assets which can

When a manager measures the interest rate exposure, he would be interested in analyzing the exposure to a set of changing interest rate. The process of r