Present value of the tax benefits from depreciation

Assignment Help Financial Management

Reference no: EM131844276

Your Company is considering a new project that will require $920,000 of new equipment at the start of the project. The equipment will have a depreciable life of 8 years and will be depreciated to a book value of $364,000 using straight-line depreciation. The cost of capital is 12%, and the firm's tax rate is 40%. Estimate the present value of the tax benefits from depreciation (closest to).

Reference no: EM131844276

Questions Cloud

Briefly describe a communication incident : Briefly describe a communication incident and list the barriers to communication which prevented the right message from getting through.

Write about samsung rewards news stories : You will write about one of the three news stories on - Samsung rewards Mobile division employees despite poor performance in 2015

How the virtual teams would collaborate and access : Describe five (5) advantages and five (5) disadvantages of using virtual teams for the organizations described in the scenario.

How a communication system works : How a communication system works? Draw a block diagram of generic communication system.?

Present value of the tax benefits from depreciation : Estimate the present value of the tax benefits from depreciation (closest to).

What is fantasy-theme analysis : What is fantasy-theme analysis? What is a fantasy within this paradigm? What is a theme? Can you help explain the relationship between these two concepts?

Explore why equilibrium of supply and demand is desirable : Explore why equilibrium of supply and demand is desirable. Explain the Costs of taxation concepts using the concept of consumer and producer surplus.

Understanding intercultural communication : The course text is Ting-Toomey, S., & Chung, L. C. (2012). Understanding intercultural communication. New York: Oxford University Press.

Result of presentation skill class : Tell us what presentation strengths you developed as a result of presentation skill class?

User Account

All Pages