After-tax salvage value

Assignment Help Finance Basics
Reference no: EM131387810

ABC Company purchased a new machinery 4 years ago for $50,538. Today, it is selling this equipment for $20,298. What is the after-tax salvage value if the tax rate is 22 percent?

The MACRS allowance percentages are as follows, commencing with year one: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent.

Reference no: EM131387810

Questions Cloud

Anne purchased a bond for a museum valued : Anne purchased a bond for a museum valued at $8000 for $2400. If the bond pays 5.5% annual interest compounded monthly, how long must she hold it until it reaches its full face value?
What is the investment profitability index : ABC Inc. is considering an investment of $1,750 million with after-tax cash inflows of $332 million per year for six years and an additional after-tax salvage value of 87 million in Year 6. The required rate of return is 8%. What is the investment..
What is the cost associated with this truck that is relevant : The manager of a small business is considering lowering the price on his main product for the coming year. If there is any increase in the company's current sales, the manager would have to acquire another delivery truck. Assume that the manager woul..
Explain any reactions you had to the interview : Describe any reactions you had to the interview. Describe your reflection on where you see your career going within the framework of higher-education leadership.
After-tax salvage value : ABC Company purchased a new machinery 4 years ago for $50,538. Today, it is selling this equipment for $20,298. What is the after-tax salvage value if the tax rate is 22 percent?
If the us electronics form contained the given provisions : Explain how the result in might change if the U.S. Electronics form contained the given provisions:- ‘‘The seller's terms govern this agreement-this acknowledgment merely constitutes a counteroffer.''
Formula for the wacc : The firm will not be issuing any new common stock. What is Avery's WACC? Can you please explain me what the formula for the WACC is?
Discuss how you plan to observe and document during lesson : Then, discuss how you plan to observe and document during the lesson. Finally, include a rubric that you have created to assess the mastery of this skill.
Derive minimized sum-of-products forms : Can you further simplify the result by using a multilevel-logic implementation? If so, how?

Reviews

Write a Review

Finance Basics Questions & Answers

  Identify key reasons that organisations may need to hold

identify key reasons that organisations may need to hold inventories. what factors may lead an organisation to change

  Compute the withdrawal amount

Lyle O'Keefe invests $37,400 at 8% yearly interest, leaving the money invested without withdrawing any of interest for eight years. At the end of eight years, Lyle withdrew the accumulated amount of money.

  What is ocean funs margin of safety

Ocean Fun is a swimsuit manufacturer. They sell swim suits at a selling price is $30 per unit. Ocean Fun's variable costs are $18 per unit. Fixed costs are $88,700. Ocean Fun expects sales of $289,400 next year. What is Ocean Fun's margin of safet..

  Firm net income and net cash flow

Butterfly Tractors had $17.50 million in sales last year. Cost of goods sold was $8.70 million, depreciation expense was $2.70 million, interest payment on outstanding debt was $1.70 million, and the firm's tax rate was 30%.

  The information provided in the proforma statement

Assignment: Based on the information provided in the proforma statement attached below, compute the Net Present Value, the Internal Rate of Return, the Cash Payback and the Accounting Rate of Return (CO 6). (Hint: Depreciation is not a cash item)

  What are the discount yield and the true annual yield

What are the discount yield and the true annual yield on a six-month, $10,000 Treasury bill purchased for $9,589?

  Bunkhouse electronics is a recently incorporated firm that

bunkhouse electronics is a recently incorporated firm that makes electronic entertainment systems. its earnings and

  Explain capital budgeting decision for purchase of computers

Explain Capital Budgeting decision for purchase of computers based on present value of costs

  The market capitalization rate for admiral motors company

the market capitalization rate for admiral motors company is 10. its expected roe is 15 and its expected eps is 7. if

  What annual rate of return will rishi earn with this invest

What annual rate of return will Rishi earn with this investment? Rishi is considering another investment, of equal risk, that earns an annual return of 8%. Which investment should he make, and why?

  What is the npv of refurbishing the furnace

Suppose the firm uses straight-line depreciation for tax purposes (so that the cost of refurbishing is completely depreciated over ten years) and pays 35% in corporate income taxes. Finally, suppose that the opportunity cost of the firm's investor..

  Applying the three-step approach to compute wacc above

Applying the Three-Step approach to compute WACC above, compute the WACC using the following information.

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