What is the aftertax salvage value of the asset

Assignment Help Financial Management

Reference no: EM131595316

An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of exist6, 110,000 and will be sold for exist1, 310,000 at the end of the project If the tax rate is 30 percent, what is the aftertax salvage value of the asset? Refer to the MACRS schedule. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Enter your answer in dollars, not millions of dollars, e.g., 1, 234, 567.)

Aftertax salvage value exist

Reference no: EM131595316

Questions Cloud

Reduce the organisation total revenue and profit : This has the potential to significantly reduce the organisation's total revenue and profit. Sonia knows she cannot resolve this alone.

Solve problem related to the two dice : Two dice are rolled. E is the event that the dice total more than 11. U is the event that at least one die comes up an even number.

Entering the forward foreign exchange market : Explain how we can hedge it contractually through options, or entering the forward foreign exchange market.

What should be your quarterly payment : What should be your quarterly payment? How many payments are you making in the 2 years?

What is the aftertax salvage value of the asset : An asset used in a four-year project falls in the five-year MACRS class for tax purposes. what is the aftertax salvage value of the asset?

Open an account at bank paying compound interest : You open an account at a bank paying compound interest. If you put $1000 in the account and the interest rate is 2%,

Capital structure will have no effect on operations of firm : The change in capital structure will have no effect on the operations of the firm. Thus, EBIT will remain at $867,000.

Result of the recapitalization : Walton Clinic, with $30 million in assets, currently uses no debt financing. Which of the following will occur as a result of the recapitalization?

Probability of picking two cards from a standard deck : An experiment consists of flipping two coins and then rolling two dice. E is the event that at least one coin comes up heads.

User Account

All Pages