Calculate after-tax cash flow at disposal

Assignment Help Financial Management

Reference no: EM13810829

Reversing Rapids Co. purchases an asset for $152,582. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of year 4 for $10,631.

Calculate After-Tax Cash Flow at disposal. Round the answer to two decimals.

Reference no: EM13810829

Questions Cloud

A fleet repair facility has the capacity to repair : A fleet repair facility has the capacity to repair 500 trucks per month. However, due to scheduled maintenance of their equipment, management feels that they can repair no more than 450 trucks per month. Last month, two of the employees were absent s..

How much interest would you pay over the life of the loan : You and your spouse are planning on buying a $200,000 house. Your bank is willing to give you a 30 year mortgage loan at 6.12%APR with monthly repayments. How much interest would you pay over the life of the loan?

What were the dividends paid by the firm : The year-end 2010 balance sheet of Brandex Inc. listed common stock and other paid-in capital at $3,000,000 and retained earnings at $5,300,000. The next year, retained earnings were listed at $5,600,000. The firm’s net income in 2011 was $1,090,000...

C&a identifies two location alternatives : C&A identifies two location alternatives. Chicago has annual fixed costs of $20,000 and variable costs of $50 per unit. New York has annual fixed costs of $55,000 and variable costs of $100 per unit. For what range of output would New York be superio..

Calculate after-tax cash flow at disposal : Reversing Rapids Co. purchases an asset for $152,582. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has..

Agreed to accept annual payments : Cromwell Enterprises is acquiring Athens, Inc. for $899,000. Athens has agreed to accept annual payments of $210,000 at an interest rate of 8.5 percent. How many years will it take Cromwell Enterprises to pay for this purchase?

The probability of a favorable pilot study : THe probability of a favorable pilot study is 60%. At this time, there will be an 80% chance that the new shopping center will make a profit of $400 million and 20% chance that there will be a loss of $100 million. What decision should be made and wh..

Warrants-Recently issued two types of bonds : Gregg Company recently issued two types of bonds. The first issue consisted of 20-year straight (no warrants attached) bonds with an 8% annual coupon. The second issue consisted of 20-year bonds with a 6% annual coupon with warrants attached.

Should elio joint venture with bostrom : Should Elio joint venture with Bostrom? Should it partner with a tier-one or a tier-two automotive supplier?

User Account

All Pages