Determine what is the aftertax salvage value of the asset

Assignment Help Financial Econometrics
Reference no: EM13335186

An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,120,000 and will be sold for $1,320,000 at the end of the project. If the tax rate is 34 percent, what is the aftertax salvage value of the asset?

Reference no: EM13335186

Questions Cloud

Write the expression for the demand curve : Write the expression for the demand curve, i.e., P = f(Q). What kind of expression is this?
What is the activity rate for production setup : What is the activity rate for Production Setup and $2,500 per setup b. $833 per setup c. $625 per setup d. $400 per setup
What is its amplitude of oscillation : An undamped 1.16-kg horizontal spring oscillator has a spring constant of 38.9 N/m. While oscillating, it is found to have a speed of 3.18 m/s as it passes through its equilibrium position. What is its amplitude of oscillation
What is the npv if the discount rate is infinite : An investment has an installed cost of $567,382. The cash flows over the four-year life of the investment are projected to be $196,584, $240,318, $188,674, and $156,313. If the discount rate is infinite, what is the NPV
Determine what is the aftertax salvage value of the asset : An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,120,000 and will be sold for $1,320,000 at the end of the project.
What is the role of breakeven analysis in decision making : What is the role of breakeven analysis in decision making?
What is the maximum voltage across the circuit : For a particular RLC series circuit, the capacitive reactance is 2.55 ?, the inductive reactance is 45.5 ?, What is the maximum voltage across the circuit
Compute whether the system has reached equilibrium : Some AgCl(s) has been placed in a beaker of water. After some time, the solubility of Ag+ and Cl- was measured to be 2.5 x 10-5 M. Using Calculations, determine whether the system has reached equilibrium.
What kind of policy would you recommend to slow population : Some economists argue that it is possible to raise the standard of living by reducing population growth. As an economist interested in incentives rather than coercion, what kind of policy would you recommend to slow population growth?

Reviews

Write a Review

Financial Econometrics Questions & Answers

  How to earn a 9 percent annual return compounded monthly

If you can earn a 9 percent annual return compounded monthly, you have to save each month. If you wait 10 years before you begin your deposits, you will then have to save each month.

  Calculate npv of each choice with high-end electronic system

Bell Mountain Vineyards is considering updating its current manual accounting system with a high-end electronic system. While the new accounting system would save the company money

  What is working capital management

What is working capital management and how does a company manage and measure liquidity?

  Explain why the answers to parts a and b are the same

Disney enterprises issued 7.55% senior debentures (bonds) on July 15, 1993, with a 100-year maturity (ie due on July 15, 2093). Suppose an investor purchased one of these bonds on July 15, 2003 for $1,050.

  Determine what was the average nominal risk premium

Suppose the average inflation rate over this time period was 3.6 percent and the average T-bill rate was 4.8 percent. Based on this information, what was the average nominal risk premium

  What were brandywines net income and total profit margin

Brandywine homecare, a not-for-profit business, had revenues of $12 million in 2004. Expenses other than depreciation totaled 75% of revenues, and depreciation expenses was $1.5 million.

  What is the arithmetic average of the returns

A stock has annual returns of 13 percent, 21 percent, -12 percent, 7 percent, and -6 percent for the past five years. The arithmetic average of these returns is _____ percent

  Determine how much are the monthly payments going to be

You are leasing a car worth $32,000 for 36 months. You put down $1200 now and agree to monthly payments. The residual value is $17,000. The financing rate is 6% (monthly compounded)

  What will be their wacc if they incerase debt as proposed

A company is trying to decide whether to revise its target capital structure. Currently, it targets 50% debt and 50% equity. However, it is considering changing the mix to 70% debt and 30% equity.

  Calculate annual rate of return for 30-year maturity bond

A 30-year maturity bond has a 9% coupon rate, paid annually. It sells today for $897.42. A 20-year maturity bond has a 8.5% coupon rate, also paid annually. It sells today for $909.5.

  Determine what kind of deal did the player snag

The contract was to be paid as $16.2 million in 2012, $16.1 million in 2013, $18.6 million in 2014, $18.7 million in 2015, $18.7 million in 2016, and $18.9 million in 2017.

  What is the present value at 10percent discount rate of tax

What is the present value at a 10% discount rate of the depreciation tax shield for a firm in the 35% tax bracket that purchases a $50,000 asset being depreciated straight-line over a 5-year life to a zero salvage value

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