Present value of tax savings from depreciation on speakers

Assignment Help Financial Management
Reference no: EM13874664

The speakers will have a 5-year life and a $15,000 salvage value. The company has a required return of 6% and a 30% tax rate. Assuming Ace used straight line depreciation, what is the present value of the tax savings from the depreciation on the speakers?

Reference no: EM13874664

Questions Cloud

How does the business operate as a single social group? : How does the business operate as a single social group?
During an experiment conducted in a room : During an experiment conducted in a room at 25°C, a laboratory assistant measures that a refrigerator that draws 2 kW of power has removed 30,000 kJ of heat from the refrigerated space, which is maintained at -30°C. The running time of the refrige..
Should the commission have not also considered the effect : Rather than look at the effect on the "competitiveness" of the dominant firm, should the Commission have not also considered the effect of the dominant firm's conduct on efficiency?
Determining the pressure of a gas changes : During an expansion process, the pressure of a gas changes from 15 to 100 psia according to the relation P = aV + b, where a = 5 psia/ft3 and b is a constant. If the initial volume of the gas is 7 ft3, calculate the work done during the process.
Present value of tax savings from depreciation on speakers : The speakers will have a 5-year life and a $15,000 salvage value. The company has a required return of 6% and a 30% tax rate. Assuming Ace used straight line depreciation, what is the present value of the tax savings from the depreciation on the spea..
Determine the mass of ice : In an effort to cool a 12-fluid-oz drink in a can, a person grabs the can and starts shaking it in the iced water of the chest at 32°F. Using the properties of water for the drink, determine the mass of ice that will melt by the time the canned dr..
What is the net present value of the freezer if the required : Joe Meat Corp. is considering replacing its old freezer with a new one that has more capacity. The company estimates that it can sell more meat products with and estimated increase of $15,000. What is the net present value of the freezer if the requi..
Assignment about the accident - american air 1420 : Need Five slides Of PPT with speaker notes and One page and half. Instructions: I need this assignment about the accident (American Air 1420)
What circumstances will film have very little market power : Are these options likely sufficient to conclude that even if all theaters in a city are owned by one firm, that that firm will not be a monopolist? Under what circumstances will film have very little market power?

Reviews

Write a Review

Financial Management Questions & Answers

  Create a delta neutral portfolio of call options

Create a delta neutral portfolio of call options and stock. Short 10,000 call options - How many shares would you buy or sell anda - What is the price of the option if it is a European call?

  Prepare and submit a consultancy report

Prepare and submit a consultancy report to the management of Anthony's Orchard, the company studied throughout this module. The company is considering expanding its product line to include apple juice.

  How much interest will stone pay over the life of the loan

Stone got a 4% 30- year mortgage for $295,200. His bank sent him a statement to notify him of his new monthly PITI payment, $1809 ( $1409 for principal and interest, $308 for taxes and $92 for homeowner's insurance). How much interest will Stone pay ..

  Balance sheet equity-income statement shows net income

Fly Away, Inc., has balance sheet equity of $6.8 million. At the same time, the income statement shows net income of $836,400. The company paid dividends of $414,018 and has 200,000 shares of stock outstanding. If the benchmark PE ratio is 32, what i..

  Discussion on the different bond features

Please provide a thorough discussion on the different bond features someone might consider pref. For example, some bonds are tax free (municipal bonds), some are insured. Of course there is a trade off between risk and return. Do you think that there..

  Manufactures time series photographic equipment

Photo light Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt/equity ratio of 0.60. It's considering building a new manufacturing facility. The facility costs $40 million now to build. This new plant..

  Retirement account-account earns interest at the rate

Luis has $120,000 in his retirement account at his present company. Because he is assuming a position with another company, Luis is planning to roll over his assets to a new account. Luis also plans to put$2500/quarter into the new account until his ..

  The foregoing transactions using accounting equation

Here is a list of transactions for a newly-formed corporation that provides professional tax services: Organized the business as a professional corporation, investing $28,000 cash in the business and issuing 1,000 shares of no-par common stock. Recei..

  What is their equity or disregarding appreciation

USE DECIMALS The Taylors have purchased a $190,000 house. They made an initial down payment of $30,000 and secured a mortgage with interest charged at the rate of 8%/year on the unpaid balance. Interest computations are made at the end of each month...

  Other industries are performing well are referred

Industries that generally perform well when other industries are performing well are referred to as:

  Rate-based decision statistic measures the excess return

Which rate-based decision statistic measures the excess return–the amount above and beyond the cost of capital for a project, rather than the gross return?

  Risk of the instrument with the higher interest rate

Do US Treasury bills have lower interest rates than large-denomination negotiable bank CD? Why or why not, is the difference appropriate, and do you think that it correctly reflect the risk of the instrument with the "higher" interest rate.

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