What is the after tax salvage value of the asset

Assignment Help Financial Management
Reference no: EM13972428

An asset used in a four-year project falls in the 5 year MACRS class for tax purposes.

The asset has an acquisition cost of $6,500,000 and will be sold for $1,600,000 at the end of the project.

If the tax rate is 35% what is the after tax salvage value of the asset?

Reference no: EM13972428

Questions Cloud

Calculate the present value if the bond if the ytm : What bond relationship are Problems 1-3 discussing? How would the answer to 1 change if the YTM is 9%?
Rock blocks is a concrete manufacturing company : Rock Blocks is a concrete manufacturing company. The company has been in business for over 60 years, and furnishes concrete blocks for building and landscape use. The company is owned and operated by the third generation of the founding family and ha..
Southgate hospital accident & emergency department : Southgate Hospital Accident & Emergency Department (A&E) provides a point of entry in to the hospital for patients. Patients can arrive through 2 routes: they can arrive via their own transportation or they can be brought in by ambulance. On entry to..
Using the straight line method what is book value of machine : Adjax bought a machine for 86,000 its estimated life is 10 years with residual value of 6000 using the straight line method what is the book value of the machine at the end of year 2.
What is the after tax salvage value of the asset : An asset used in a four-year project falls in the 5 year MACRS class for tax purposes. The asset has an acquisition cost of $6,500,000 and will be sold for $1,600,000 at the end of the project. If the tax rate is 35% what is the after tax salvage val..
Use the estimated regression equation to predict the rating : Use the estimated regression equation to predict the rating for an elliptical trainer with a price of$1500. Use the least squares method to develop the estimated regression equation.
Which finding for acute exasperation of asthma : Which finding for acute exasperation of asthma requires immediate attention.  A. Harsh unproductive cough.  B. Silent breath sounds  C. Wheezing in all lung fields or D. Inspiration longer than expiration.
What is the yield to maturity at a current market price : What is the yield to maturity at a current market price of (1) $829 and (2) $1,104? Would you pay $829 for each bond if you thought that a "fair" market interest rate for such bonds was 12%-that is if rd=12%? Explain your answer.
Explain what joints are affected : Choose a joint disorder, and explain what joints are affected, what causes the disorder, and how it may be treated. This must be a paragraph

Reviews

Write a Review

Financial Management Questions & Answers

  Markets custom application-specific integrated circuits

Electronic Timing, Inc. (ETI), is a small company founded 15 years ago by electronics engineers Tom Miller and Jessica Kerr. ETI manufactures integrated circuits to capitalize on the complex mixed-signal design technology and has recently entered the..

  We know that the default free rate and stock market

We have the Washington firm on which we have the following information. Its bheta unlevered is 3, its D/E is 4/1, and its tax rate is .3. Additionally we know that the default free rate is 5% and the stock market has returned 11 % over a long period ..

  What is the value of the firm

You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.6, a debt-to-equity ratio of .3, and a tax rate of 30 percent. Assume a risk-free rate of 5 percent a..

  How much did he borrow

A student borrowed some money from his father at 2% simple interest to buy a car. If he paid his father $360 in interest after 3 years, how much did he borrow?

  General and administrative expenses

Advantage First Corporation has sales of $4,964,060; income tax of $514,886; the selling, general and administrative expenses of $224,035; depreciation of $368,851; cost of goods sold of $2,900,500; and interest expense of $101,207. What is the amoun..

  Paid an annual dividend of per share

A company has just paid an annual dividend of $0.75 per share. If the dividends are expected to grow at a rate of 10% p.a. forever and PPT shareholders are known to demand a return of 15%, at what price should PPT shares sell?

  Prepare contribution format income statement for the year

Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for $200. What is the company’s break-even point in terms of the number of barbecue grills sold? Assume that the company uses variable costing. Compute..

  Do project financial results affect financial health

Do project financial results affect financial health of the entire organization? Can you think of an example where the reverse holds true as well -- in other words, an example where the financial health of an organization affected project outcomes?

  Effective annual interest rate of these discount loans

Faircross Farms harvests its crops four times annually and receives payment for its crop 90 days after it is picked and shipped. However, planting, irrigating, and harvesting must be done on a nearly continual schedule. What is the effective annual i..

  What is the current total value of beach and company assets

Beach & Company reported net income of $40 million for last year. Depreciation expense totaled $18 million and capital expenditures came to $8 million. Free cash flow is expected to grow at a rate of 5% for the foreseeable future. What is the current..

  What is standard deviation rounded to nearest whole number

You are given the following probability distribution of returns for stock J: A probability of .2 that the return will be 12%; a probability of .35 that the return will be 18%; a probability of .3 that the return will be -10%; and a probability of .15..

  What is the maximum percentage decline in the stock

You decide to buy 1,500 shares of stock at a price of $62 and an initial margin of 80 percent. What is the maximum percentage decline in the stock before you will receive a margin call if the maintenance margin is 40 percent?

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