What is the after-tax salvage value of the 3-year life

Assignment Help Financial Econometrics
Reference no: EM13336047

Your firm needs a computerized machine tool lathe which costs $42,000 and requires $11,200 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 39 percent and a discount rate of 12 percent.

If the lathe can be sold for $4,200 at the end of year 3, what is the after-tax salvage value?

Reference no: EM13336047

Questions Cloud

Cyber security : The Security Strategy wants "a transformative programme for cyber security". Do we, as a country, need this programme?, identify the risks we face as a country from Cyber attack, and explain what could be done to defend the country from such threats.
Find the power dissipated as heat in the resistor : A resistor R = 12 M ohms is connected in series with a capacitor C = .7 F and a battery V = 12 volts. what is the power supplied by the battery and the power dissipated as heat in the resistor
Responsible for protecting corporate internet : What sort of computer-based attacks can a company whose computers are linked to the internet expect to have to defend itself and its computers against? Give an example of each type of attack. Who should be responsible for protecting corporate interne..
Create an rdm for each table in the erd : List all the business rules for the database for Kangaroo Inn. An example of a business rule is: "An invoice is generated by only one customer".
What is the after-tax salvage value of the 3-year life : Your firm needs a computerized machine tool lathe which costs $42,000 and requires $11,200 in maintenance for each year of its 3-year life. After three years, this machine will be replaced.
How far will the locomotive roll before it comes to a stop : A 50,000 kg locomotive is traveling at 60.0 m/s when its engine and brakes both fail. How far will the locomotive roll before it comes to a stop
Explore a few of the concepts in greater depth : Create a report in which you address the four Case Study Questions, using external literature sources to support your answers.
Fiscal policy can affect swings in the business cycle : Some economist believe that Fiscal Policy can affect swings in the business cycle. Looking back to the book, it discusses the Japanese government and their government cutting taxes. Do you believe the Japanese were right or wrong to use Fiscal Policy..
Find the magnitudes of these three forces : The drawing shows a uniform horizontal beam attached to a vertical wall by a frictionless hinge and supported from below at an angle ?= 36o by a brace that is attached to a pin. Find the magnitudes of these three forces

Reviews

Write a Review

Financial Econometrics Questions & Answers

  How much will the teams insurer pay for the loss

The Lincoln Saltdogs is a professional minor league baseball team in the American Association league. The clubhouse is insured for $300,000 under a commercial property insurance policy with an 80 percent coinsurance clause.

  Determine how much will have at the end of the 36 years

You have $18,000 you want to invest for the next 36 years. You are offered an investment plan that will pay you 8 percent per year for the next 18 years and 12 percent per year for the last 18 years.

  What are one-time cash flows associated with ending project

The project has an initial cost of $554--this is also the amount which can be depreciated using the following depreciation schedule: Year 1 is 33%, Year 2 is 45%, Year 3 is 15%, and Year 4 is 7%.

  Compute the activity rate for each of the activity cost pool

An intern suggested that the company use activity-based costing to cost its products. A team was formed to investigate this idea. It came back with the recommendation that four activity cost pools be used.

  Determine what is the expected number of parts retrieved

A specific automotive part that a service station stocks in its inventory has an 8% chance of being defective. Suppose many cars come into the service station needing this part each week.

  What position should the company take long or short

a company has a portfolio of stocks worth $100 million. the beta of the porfolio is 1.2. the company would like to use the CME december futures contract on the s&p 500 to change the beta of the portfolio to 0.5 during the period July 16 to Novembe..

  What will be the current value of a share of avrils stock

avril synchronistics will pay a dividend of $1.30 per share this year. it is expected that this dividend will grow by 5% each year in the future.

  Compute value of long-term elements of the capital structure

You also have 100,000 shares of $100 par, 9% dividend perpetual preferred stock outstanding. The current market price is $90.00. Any new issues of preferred stock would incur a $3.00 per share flotation cost.

  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.

  Predict one major change in the us financial environment

Predict one major change in the U.S. financial environment that may likely occur within the next five years, indicating its impact to the economy and businesses.

  How much cash will have accumulated by age 65

If an invdividual places $5000 per year into an individual retirement account beginning at age 25, how much cash will have accumulated by age 65 if 9% interest is earned each year

  What is the most that an investor should be willing to pay

suppose that the risk-free rate is currently 9% per annum(quoted as an APR). You read of a strange security that offers a risk-free payoff of 10$ per month for the next 5 years

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