What is the aftertax cash flow from the sale of the asset

Assignment Help Finance Basics
Reference no: EM131732382

Question: Calculating Salvage Value. Consider an asset that costs $545,000 and is depreciated straight-line to zero over its eight-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $95,000. If the relevant tax rate is 35 percent, what is the aftertax cash flow from the sale of this asset?

Reference no: EM131732382

Questions Cloud

Calculate the annual depreciation allowances : Calculating Depreciation. A piece of newly purchased industrial equipment costs $715,000 and is classified as seven-year property under MACRS.
Average variable cost function of the form : Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following results.
Define a drug toxicity of nitroglycerin : Which of the following is not directly related to a drug toxicity of Nitroglycerin
Specify number of degrees of freedom for each model : Let W, X, Y, and Z be classification variables with 2, 3, 4, and 3 categories respectively. Specify number of degrees of freedom for each model
What is the aftertax cash flow from the sale of the asset : Calculating Salvage Value. Consider an asset that costs $545,000 and is depreciated straight-line to zero over its eight-year tax life.
Calculate the present value : (a) Calculate the present value of going to school and not going to school assuming his discount rate is 10%.
Define blood tests indicate anemia : Blood tests indicate anemia. Some of his stool samples initially were positive for occult blood
What is the aftertax salvage value of the asset : Calculating Salvage Value. An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost.
Analyze various ethical and moral issues in healt : Analyzed various ethical and moral issues in healt, I want you to respond to this issues presented in the video Dollars & Dentists.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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