The firms marginal tax rate is 40 percent if the firm

Assignment Help Finance Basics
Reference no: EM13566661

Two years ago, Agro, Inc., purchased an ACE generator that cost $250,000. Agro had to pay an additional $50,000 for delivery and installation, and the investment in the generator required the firm to increase its net working capital position by $25,000. The generator, which is being depreciated over a period of five years using straight-line depreciation, has a current market value of $79,550. The firm's marginal tax rate is 40 percent. If the firm liquidates the asset for its current market value, compute the after tax proceeds from the sale of the asset.

Reference no: EM13566661

Questions Cloud

Discuss the risk in pursuing each opportunity without : length 700 wordsyou are a marketing manager interviewing for a new job at several different firms simultaneously. you
Npv and the profitability index if we define the npv index : npv and the profitability index if we define the npv index as the ratio of npv to cost what is the relationship between
The management of wymer corporation would like to : the management of wymer corporation would like to investigate the possibility of basing its predetermined overhead rate
Donaldson amp son has an roa of 10 a 2 profit margin and a : donaldson amp son has an roa of 10 a 2 profit margin and a return on equity equal to 15. what is the companys total
The firms marginal tax rate is 40 percent if the firm : two years ago agro inc. purchased an ace generator that cost 250000. agro had to pay an additional 50000 for delivery
The owners invested 10000 cash in the companythe company : the transactions for the newman company are below1. the owners invested 10000 cash in the company.2. the company
Maintaining order is one of the two principle reasons why : maintaining order is one of the two principle reasons why human societies create governments. when asked how government
What is the essential difference between sensitivity : what is the essential difference between sensitivity analysis and scenario
A 6-month put option on smith corps stock has a strike : a 6-month put option on smith corp.s stock has a strike price of 45 and sells in the market for 8.90. smiths current

Reviews

Write a Review

Finance Basics Questions & Answers

  You are the general manager of a large construction project

1. you are the general manager of a large construction project. the contract has both financial incentives for

  What are the pros and cons of the international sales plan

Taking all factors into account, should the company pursue international sales further? Why or why not?

  What are your opinions on the use of npv vs irr in making

what are your opinions on the use of npv vs irr in making capital allocation decisions?nbsp please be specific.discuss

  Determine the credit amount

The Snow Company issues 10,000 shares for $50 par value preferred stock for cash at $60 per share. The entry to record the transaction will consist of a debit to Cash for $600,000 and a credit or credits to

  What is the cost of equity

The Chicken Coup Restaurant is expected to pay an annual dividend of $2.20 a share next year. The company recently announced that future dividends will increase by 2.8 percent annually. The current market price is $33.60 a share. What is the cost ..

  What required rates of return would make you indifferent

Assume Emerson Electric's managers expect an earnings downturn and a resulting decrease in growth of 3 percent. How does this affect your answers to parts a and b?

  What is ladders roe and roa

Ladders Inc. has a net profit margin of 5.5% on sales of $50.6 million It has book value of equity of $39.5 million and total book liabilities of $31.9 million. What is Ladders ROE and ROA?

  Which of the following dividend policy theories

Dividend changes may be used by management as a credible communication tool to signal investors about future earnings under which of the following dividend policy theories?

  What enterprise value do you estimate for creed

Neither Creed nor its acquisition target, Organic and More, uses debt financing at present. However, The VC has offered to provide the acquisition financing in the form of convertible debt that pays interest at a rate of 8 percent per year and is ..

  The slope of the regression line

A graph shows a corporation's common stock returns on the Y axis and the market returns on the X axis. The slope of the regression line represents

  Explain how earnings management affects earnings quality

explain how earnings management affects earnings quality. how is earnings management distinguished from fraudulent

  Investment management assignmentprepare a report

investment management assignmentprepare a report recommending the appropriate investment of aud3 million for a five

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