What is the cash flow from disposal

Assignment Help Finance Basics
Reference no: EM131412898

Benson Co. purchases an asset for $6,000. This asset qualifies as a seven-year recovery asset under MACRS. Benson has a tax rate of 30%. The seven-year expense percentage for years 1,2,3,4,5 and 6 are 14.29%,24.49%,17.49%,8.93% and 8.93% respectively. If the asset is sold at the six years for $2,000, what is the cash flow from disposal? Show your working.

Reference no: EM131412898

Questions Cloud

Pros and cons of fixed and adjustable rate loans : The lender estimates that closing costs should equal $750 plus three points. How much will closing costs be on a $200,000 home? What are the pros and cons of fixed and adjustable rate loans? No plagiarism.
What variables could lead to different outcomes : What flaws might exist in your calculations, and what variables could lead to different outcomes? What actions could you take ensure you reach your target goal?
Novel diagnostic tools for breast cancer : You need to prepare two imagine tools, two histological tools and two molecular biology tools with research findings, Harvard referencing style
Discuss the various types of treatments for sexual offenders : Discuss the various types of treatments for sexual offenders. Which strategies for rehabilitation should be undertaken for the various types of rapists?
What is the cash flow from disposal : Benson has a tax rate of 30%. The seven-year expense percentage for years 1,2,3,4,5 and 6 are 14.29%,24.49%,17.49%,8.93% and 8.93% respectively. If the asset is sold at the six years for $2,000, what is the cash flow from disposal? Show your worki..
Discuss what is contained in a sexual battery kit : Discuss what is contained in a sexual battery kit, the significance of each item, and what evidential value it may hold to prove a rape occurred.Describe at least three of the methods that can be used by the legal system to reject sexual assault c..
Discuss three most credible sources found supporting topic : Discuss the three most credible sources found supporting topic - Identify the author(s)/organizations/sponsors of the sources of information and discuss the evidence provided that supports the opinion in the source of information.
Macaulay duration always : And why Macaulay duration always increases with maturity for bonds selling at par or at a premium? Why holding other factors constant, the Macaulay Duration of a coupon bond is higher when the bond's yield is lower?
Identify important or significant changes in families : Sociologists cite the weakening of the family as one of the causes for some of the problems that American society faces today. Do you agree? In your paper, include the following information:Identify important or significant changes in families sin..

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the different types of risk

Determine the different types of risk? How would you differentiate a typical risk and a corporate risk? Which type of risk has the most impact on a health benefits company that provides health, life, accident, disability,

  Determine its cost of equity capital

Phillip Enterprises Inc. needs to determine its cost of equity capital.

  Motors inc recently reported 6 million of net income its

motors inc. recently reported 6 million of net income. its ebit was 13 million and its tax rate was 40. what was the

  What is the duration of the bond

What is the duration of the bond? If the yield curve remains unchanged, what is the bond's duration in three years? In five years? In eight years?

  Calculating the current yield

Ajax Corporation has a bond with a coupon rate of 12 percent, maturing in 15 years at a value of $1000 per bond. The current market price is $960.

  Devise a hypothetical business situation in which buying a

devise a hypothetical business situation in which buying a lookback call option on a commodity may be a sound strategy

  Australian commonwealth government treasury bonds

The rate of return for an Australian Commonwealth Government Treasury Bond is given as 4% per annum. The yearly return for the Australian share market is given as 12%. Suppose a listed company has a beta value of 0.5.

  Why do some companies pay common stock cash dividends

Google does not currently pay any common stock cash dividends. Why do some companies pay common stock cash dividends whereas other companies do not?

  Compute the break even point in units

The Hartnett Company manufactures baseball bats with Pudge Rodriguez's autograph stamped on them. Each bat trades for $13 and has a variable expense of $8.

  Identify two alternative investment strategies one in the

you would like to speculate on a rise in the price of a certain stock. the current stock price is 29 and a 3-month

  Adjustable mirror on the michelson interferometer

When the adjustable mirror on the Michelson Interferometer is moved 20 wavelengths, how many fringe pattern shifts would be counted?

  Determine the equipments after-tax salvage value for use in

mushali services is now at the end of the final year of a project. the equipment originally cost 22500 of which 75 has

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