What is the amount of the after-tax salvage value

Assignment Help Financial Management
Reference no: EM131556355

Ausel’s is considering a seven-year project that will require $248,230 for new fixed assets. The fixed assets will be depreciated using three-year MACRS percentages. The percentages are 0.3333, 0.4445, 0.1481 and 0.0741 for year 1 to year 4 respectively. At the end of the project, the fixed assets can be sold for $20,570 (this is the salvage). The tax rate is 39 percent.

What is the amount of the after-tax salvage value?

Reference no: EM131556355

Questions Cloud

Consider stock that currently pays an annual dividend : Consider a stock that currently pays an annual dividend of $1.75 per share. What is the estimated value of the stock.
Expansion versus replacement cash flows : Expansion versus replacement cash flows Edison systems has estimated the cash flows over the 5-year lives for two projects A and B.
Develop a learning plan with strategies for the child : Develop a learning plan with strategies for the child from the "Case Study" that includes the following Clear, measurable learning goals
Identify and target the array of competencies : Identify and target the array of competencies you need to reach your professional objectives and to help you organize your Kaplan MSN learning experience
What is the amount of the after-tax salvage value : What is the amount of the after-tax salvage value?
What should stock price be : A call option on Jupiter Motors stock with an exercise price of $60 and one-year expiration is selling at $9. what should the stock price be?
Calculating the WACC : Calculating the WACC. Calculate the WACC for Parrothead Enterprises.
What are the characteristics of the victims : What factors affect this type of violence? What are the characteristics of the victims? What are the characteristics of those who commit this type of violence?
What is repo market and how was bear stearns impacted by it : The video discusses the Repo Market and Bear Stearns reliance on it. What is the Repo Market, and how was Bear Stearns impacted by it?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the total return on bond equivalent basis

Suppose an investor can purchase a 10-year, 4% coupon bond that pays interest semiannually and the price of this bond is $100. The yield to maturity for this bond is 4% on bond-equivalent basis. Assume the investor can reinvest the coupon payments at..

  Real risk-free rate-maturity risk premium is zero

Assume the following: The real risk-free rate, r*, is expected to remain constant at 3%. Inflation is expected to be 3% next year and then to be constant at 2% a year thereafter. The maturity risk premium is zero. Given this information, which of the..

  What does the article mean by comparable treasury

In 2012, Anheuser-Busch In Bev NY, maker of Budweiser and other beer, sold debt of varying maturities. According to an article in the Wall Street Journal: "The three-year notes priced with a risk premium of 0.5 percentage point over comparable Treasu..

  What does the market believe will be the stocks price

what does the market believe will be the stock's price at the end of 3 years.

  Intend to retire-accumulate the necessary funds

You are currently 30 years old. You intend to retire at age 60, and you want to be able to receive a 20-year, $100,000 beginning-of-the-year annuity, with the first payment to be received on your 60th birthday. If you expect your investments to earn ..

  Thoreau quote at the top of the mini-lecture

After reviewing our reading, what do you think of the Thoreau quote at the top of the mini-lecture ? Do you think legislation hurts, helps or hurts and helps tr

  Ompute the current yield and capital gains yield

Gabbys garage issued a bond with a 10-year maturity, a $1,000 par value, a 10 percent coupon rate, and semi-annual interest payments. Two years after the bond was issued, the going rate of interest on similar-risk bonds fell to 6 percent. Suppose the..

  Maximum profit that the trader can earn by using strategy

What is the maximum profit that the trader can earn by using this strategy?

  Using the depreciation methods of straight-line

using the depreciation methods of straight-line, declining-balance, and sum­ of-the-year' s-digits.

  Earn higher rate of return on your investments

Which of the following conclusions would be true if you earn a higher rate of return on your investments? Select one: The greater the present value would be for any lump sum you would receive in the future. The greater the present value would be for ..

  Element of the marketing mix is most compelling for customer

Which element of the marketing mix is most compelling for customers? Why?

  Retained the right to live in the house for the remainder

A father deeded a house as a gift to his son in 1994 but retained the right to live in the house for the remainder of his life. The father died recently. The following are relevant facts. When the son sold the property he had a gain of

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