User Account

All Pages

What is the equivalent annual saving from the purchase

Assignment Help Finance Basics
Reference no: EM132460157

Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball for $30,000 and sell its old low-pressure glueball, which is fully depreciated, for $5,000. The new equipment has a 10-year useful life and will save $8,000 a year in expenses. The opportunity cost of capital is 10%, and the firm's tax rate is 21%. What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the investment immediately?

Reference no: EM132460157

Questions Cloud

What accounting issues do find : What accounting issues do you find with this situation? What course of action might you take? Why ?lunch hour traffic has increased dramatically
Explain what the art says about the people who created it : Choose any of the early American (native or non-native) cultures that we have studied so far and explain how its art reflects its culture. Using three specific.
Present value of these future salary payments : If the discount rate is 9%, what is the present value of these future salary payments?
How japanese does manga need to be to be called manga : What is it in relation to other similar forms (that is, comics, graphic novels, story boards, sequential art, etc)? How Japanese does manga need to be to be.
What is the equivalent annual saving from the purchase : What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the investment immediately?
How would theetransactions be reported on larsen statement : How would these transactions be reported on Larsen's statement of cash flows for 2018?Larsen sold the securities in December at a gain of $5,600
Explain how each of your choices was an effective policy : Address the following for your selections: Explain how each of your choices was an effective policy to thwart international communist expansion.
What are the operating cash flows in year : a. What are the operating cash flows in each year? b. What are the total cash flows in each year?
Compute the operating cycle : Compute the operating cycle based on the following information:

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd