What is the aftertax cash flow from the sale of asset

Assignment Help Financial Management

Reference no: EM131620887

A. Consider an asset that costs $1018000 and is depreciated straight-line to zero over its 14-year tax life. The asset is to be used in a 6-year project; at the end of the project, the asset can be sold for $206000. If the relevant tax rate is 0.28, what is the aftertax cash flow from the sale of this asset (SVNOT)?

B. Consider an asset that costs $801000 and is depreciated straight-line to 24000 over its 9-year tax life. The asset is to be used in a 7-year project; at the end of the project, the asset can be sold for $117000. If the relevant tax rate is 0.24, what is the aftertax cash flow from the sale of this asset (SVNOT)?

Reference no: EM131620887

Questions Cloud

Explain legal terminology and concepts to scenarios : As a student endeavoring to join the professional world, I feel it is important to be equipped with legal knowledge

What is the market value of the firm prior to the recap : An all-equity business has 100 million shares outstanding selling for $25 a share. What is the market value of the firm prior to the recap?

What is the total value from all four companies : Shantell recognized the stationery, and looked forward to another of her Aunt Mildred's letters. Inside, though, were a number of documents along with a short.

European union formed : Why was the European Union formed and what powers does it have? What is NATO and is it still relevant?

What is the aftertax cash flow from the sale of asset : what is the aftertax cash flow from the sale of this asset (SVNOT)?

Calculate total of the decimal equivalents for each city : Carl has just started his new job as a human resource management assistant for JK Manufacturing. His first project is to gather demographic information.

The preparation of firm net cash flow : How are investments in net working capital used in the preparation of a firm's net cash flow?

Discuss potential personal liability to acme fireworks : Explain the potential personal liability to Acme Fireworks if a spectator is injured by a stray firework from a fireworks display.

Citizenship participated in the revolution : According to Levy and Applewhite, what were some of the ways in which women who'd been denied full citizenship participated in the revolution.

User Account

All Pages