What is the aftertax salvage value of the asset

Assignment Help Financial Management
Reference no: EM132012438

1. A project has an initial cost of $1,000,000 and is expected to last for 2 years. In year 1, depreciation charge will be $100,000 and earnings are expected to be $109,397. In year 2, depreciation will be $100,000 and earnings are expected to be $245,664. Assume the required return is 10%. What is the value of this project?

2. An asset used in a 4-year project falls in the 5-year MACRS class (refer to MACRS table on page 277), for tax purposes. The asset has an acquisition cost of $23937000 and will be sold for $3934000 at the end of the project. If the tax rate is 0.39, what is the aftertax salvage value of the asset ?

Reference no: EM132012438

Questions Cloud

Decided to sell new line of golf clubs : McGilla Golf has decided to sell a new line of golf clubs. Calculate the payback period. Calculate the IRR and NPV.
Compute depreciation expense under straight-line method : Muggsy Bogues Company purchased equipment for $212,000 on October 1, 2014. Compute depreciation expense under Straight-line method
Determine the line slope m : Because the variable m does not appear in Ax + By = C, equations in this form make it impossible to determine the line's slope m.
How does grappling relate to your ability : What is grappling, and why is it important? How does grappling relate to your ability to think critically? Describe a time when you used grappling.
What is the aftertax salvage value of the asset : The asset has an acquisition cost of $23937000 and will be sold for $3934000 at the end of the project. what is the aftertax salvage value of the asset ?
Find the midpoint of the line segment connecting a : 1. Find distance between A (10, 4) and B (2, - 6). 2. Find the midpoint of the line segment connecting A (10, 4) and B (2, - 6).
Expansion project that requires initial fixed asset : Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $765000.
How do you define an imaginary number : How do you define an imaginary number? How does it differ from other types of numbers?
What is the aftertax salvage value in year three : Summer Tyme, Inc., is considering new 3-year expansion project that requires initial fixed asset investment of $811000. What is aftertax salvage value in year 3

Reviews

Write a Review

 

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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