Depreciated straight-line to zero over eight-year tax life

Assignment Help Financial Management

Reference no: EM13907578

Consider an asset that costs $664,000 and is depreciated straight-line to zero over its eight-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $178,000. If the relevant tax rate is 35 percent, what is the after tax cash flow from the sale of this asset? (Do not round intermediate calculations.) After tax salvage value $

Reference no: EM13907578

Questions Cloud

What effects does water have on atmospheric stability : In picture below, explain why the balloons are rising in terms of atmospheric stability. What effects does water have on atmospheric stability

What reasons why delta air lines extended lives of flight eq : What are some of the possible reasons why Delta Air Lines may have extended the lives of flight equipment and changed the residual values for depreciation purposes four times since 1986?

Defines the value of a firm : Which of the following defines the value of a firm?

Compute return on investment for the year : For a recent year LOreal reported operating profit of 3,385 (in millions) for its Cosmetics division.

Depreciated straight-line to zero over eight-year tax life : Consider an asset that costs $664,000 and is depreciated straight-line to zero over its eight-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $178,000. If the relevant tax rate is 35..

Compute triangle area : Write a program with a form that contains three labels & text boxes (Base, Height & Area) in addition to a button labeled compute Triangle Area. The user must enter the base and height to find the area. (Triangle Area = 0. 5base x Height)

Determine the present value now of an investment : Determine the present value now of an investment of $3,000 made one year from now and additional $3,000 made 2 years from now if the annual discount rate is 4%

Voting rights to management group running general electric : Jacques Smith holds 1,000 shares of General Electric’s (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Jacques doesn’t plan to attend. Jacques did not sell his shares but gave his voting rights to the..

Define the design and layout : The final project is a web site. You can choose any appropriate topic of the website. Writing a proposal keep in mind the following requirements for the final project

User Account

All Pages