What is the current book value of this equipment

Assignment Help Financial Management
Reference no: EM13848674

Western Wear purchased some 3-year MACRS property 3 years ago. What is the current book value of this equipment if the original cost was $48,000? The MACRS allowance percentages are as follows, commencing with year one: 33.33, 44.45, 14.81, and 7.41 percent

Reference no: EM13848674

Questions Cloud

Journal entries in books of alfa ltd : Pass  necessary journal entries in books of Alfa Ltd. for the above transactions. Application for 1,00,000 shares received. Shares were allotted to all the applicants on pro-rata basis and excess  money received with
Calculate option payoff and profit for each these spot value : Rixon Corporation purchases CHF call options with a strike price of USD 0.90. The option premium is USD 0.04 per currency unit. A financial analyst at Rixon forecasts the following possible values for spot CHFUSD at maturity. Calculate option payoff ..
What net profit does this investor obtain : Options on GBP are traded on the Philadelphia Stock Exchange. A call expiring in three months with a strike price of USD 1.60 is trading at a price of USD 0.04. Consider an investor who buys three contracts and holds the options to maturity. At matur..
Improving quality and achieving equity in a time : Article - In Pursuit of High-Value Healthcare: The Case for Improving Quality and Achieving Equity in a Time of Healthcare Transformation. Conclusion. Discuss any similarities or differences in conclusions (2 paragraphs)
What is the current book value of this equipment : Western Wear purchased some 3-year MACRS property 3 years ago. What is the current book value of this equipment if the original cost was $48,000? The MACRS allowance percentages are as follows, commencing with year one: 33.33, 44.45, 14.81, and 7.41 ..
Capital budgeting-evaluation of investment opportunities : What would your options be when faced with the demands of an assertive CEO who expects you to "make it work" on capital budgeting /evaluation of investment opportunities. brainstorm several options.
Represents efficient credit-collection policy : You are analyzing two companies that manufacture electronic toys – Like Games Inc. and Our Play Inc. Like Games was launched eight years ago, whereas Our Play is relatively new company that has been operation for only the past two years. (high or low..
Use normal calendar year for accounting purposes : We expect to receive $6.75 million this year from our Local Option Income Tax (LOIT). The state collects the tax and sends equal payments to us at the end of each quarter. Assume we use a normal calendar year for accounting purposes. How much money w..
Inventory turnover ratio across companies in industry : Drugal Brewing Co. has a quick ratio of 2.00x, $30,825 in cash, $17,125 in accounts receivable, some inventory, total current assets of $68,500, and total current liabilities of $23,975. The company reported annual sales of $100,000 in the most recen..

Reviews

Write a Review

Financial Management Questions & Answers

  Explain what is the firm''s weighted average cost of capital

Fancee Restaurant's cost of equity is 15.3 percent and its aftertax cost of debt is 6.1 percent. What is the firm's weighted average cost of capital if its debt-equity ratio is 0.58 and the tax rate is 30 percent?

  About the retirement fund

You have $100,000 in your retirement fund that is earning 5.5 percent per year, compounded quarterly. How many dollars in withdrawals per month would reduce this nest egg to zero in 20 years? How many dollars per month can you withdraw for as long as..

  Analyze or look at brand and critically assess them an

analyze or look at brand and critically assess them an important analysis is the value chain. the brand value chain

  Manufacture of a wide range of consumer products

A Carlyle chemical is evaluating a new chemical compound used in the manufacture of a wide range of consumer products. The firm is concerned that inflation in the cost of raw materials will have an adverse effect on the projects cash flow. Specifical..

  Assume that entire receivables balance has to be financed

Fargo Memorial Hospital has annual patient service revenues of $14,400,000. It has two major third-party payers, and some of its patients are self-payers. Suppose the hospital's annual cost of carrying receivables is 10%. If the electronic claims sys..

  Identify the arbitrage opportunity open to the trader

A European call option and a European put option on a stock both have a strike price of $45 and expire in 6 months. Currently, the call price is $10 and the put price is $5 in the market. The risk-free rate is 2% per annum, and the current stock pric..

  Classic retirement problem

This is a classic retirement problem. A time line will help in solving it. Your friend is celebrating her 35th birthday today and wants to start saving for her anticipated retirement at age 65. She wants to make equal annual payments on each birthday..

  What is the amount of the companys accounts receivable

Size of Accounts Receivable. Essence of Skunk Fragrances, Ltd., sells 6,500 units of its perfume collection each year at a price per unit of $270. All sales are on credit with terms of 1/10, net 30. The discount is taken by 40 percent of the customer..

  Affected by a stock dividend but not by a stock split

Which of the following balance sheet accounts will be affected by a stock dividend but not by a stock split?

  Explain the cash payback technique

Explain the cash payback technique. Be sure to include the formula used to calculate the cash payback period and explain how the calculated period is evaluated.

  Bond has yield to maturity-payments made semi-annually

A bond has a yield to maturity of 4.5% , Face value of $1000, and 8 years until maturity. In excel, compute and graph the price of this bond for coupon rates of 0% to 20%, in 1% increments, with payments made semi-annually. Also compute the duration.

  What is the companys unlevered cost of equity capital

Skillet Industries has a debt-equity ratio of 1.4. Its WACC is 9.4%, and its cost of debt is 6.7%. The corporate tax rate is 35%. What is the company's cost of equity capital?  What is the company's unlevered cost of equity capital?

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