User Account

All Pages

Calculate the net present value of the estimated cash flows

Assignment Help Accounting Basics
Reference no: EM132605364

Question - Palm Company is considering the purchase of a new machine at a cost of $12,000. It should save $3,000 in cash operating costs per year. The tax rate is 40%. Its estimated life is eight years. The estimated salvage value is $1,000 which is ignored in calculating ACRS depreciation.

Straight-line depreciation over the life of the proposal would be used for book purposes and ACRS for three-year property would be employed for tax purposes. The ACRS personal property rates are presented below.

ACRS Tables for Three-Year Property

Year 1-25%

Year 2-38%

Year 3-37%

REQUIRED - Calculate the net present value of the estimated after-tax cash flows of the Palm proposal if the minimum acceptable rate of return is 10%.

Reference no: EM132605364

Questions Cloud

Describe the problem you are interested in researching : In this course, each of you will be developing a research proposal. Our focus this week is to identify a problem specific to your role option that is amenable.
What is the depreciation expense on this asset : The activity method will be used for depreciation. What is the depreciation expense on this asset in the current year
How will understanding statistics prepare you for research : Write a 500-word reflection discussing your responses to the two Discussion questions below , how will understanding the statistics prepare you for reading.
Scheduling a promotional meeting for prospective customers : At the request of the marketing manager, Roxanne has collected information about scheduling a promotional meeting for prospective customers
Calculate the net present value of the estimated cash flows : Calculate the net present value of the estimated after-tax cash flows of the Palm proposal if the minimum acceptable rate of return is 10%
Review principles and code of ethics of journalism : Review the principles and code of ethics of Journalism. Refer to the Society of Professional Journalists (SPJ) Code of Ethics website.
Staff food safety and sanitation : If you are looking for someone to teach your staff food safety and sanitation, how would you choose an instructor?
Outline the purpose of an enterprise agreement : Outline the purpose of an enterprise agreement and with which entity must the agreement be registered.
How experience will affect your professional practice : After presenting your capstone project change proposal, write a 250-350 word summary of the presentation. Include a description of the changes that were suggest

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd