What is the net cash flow from the salvage value

Assignment Help Finance Basics
Reference no: EM13282502

Ronnie's Custom Cars purchased some fixed assets two years ago for $100,000. The assets are classified as 5-year property for MACRS. Ronnie is considering selling these assets now so he can buy some newer fixed assets which utilize the latest in technology. Ronnie has been offered $52,000 for his old assets. What is the net cash flow from the salvage value if the tax rate is 34 percent?

 

MACRS 5-year property
Year Rate
1 20.00%
2 32.00%
3 19.20%
4 11.52%
5 11.52%
6 5.76%

 

Reference no: EM13282502

Questions Cloud

Determine which output signal suers the worst delay : If Nand gates are used throughoutand a ripple-carry design is used, calculate the delay through the adder, assuming all inputs are presented at the same instant, and counting D seconds per gate. Which output signal suers the worst delay.
Regression analysis- benefits and intrinsic : Run a regression analysis using the BENEFITS column of all data points in the AIU data set as the independent variable and the INTRINSIC job satisfaction column of all data points in the AIU data set as the dependent variable.
Compute the standard molar enthalpy of formation : Calculate the standard molar enthalpy of formation ?H°f of N2H4(g) from the following information: N2(g) + 2H2(g) ? N2H4(l) ?H°rxn = +50.6 kJ N2H4(g) ? N2H4(l) ?H°rxn = -44.8 kJ A. +5.8 kJ/mol B. +95.4 kJ/mol C. +47.7 kJ/mol D. -95.4 kJ/mol E. -5...
Determine the focal length of the projection lens : How far from the object should the lens of the projector be placed to form the image on the screen?
What is the net cash flow from the salvage value : Ronnie has been offered $52,000 for his old assets. What is the net cash flow from the salvage value if the tax rate is 34 percent?
Determine the angle between the vectors : Draw a cube and Cartesian axes. All points of the cube lie in the (+,+,+) octant of the coordiante system. Determine the angle (in degrees) between the vectors OA and OC
Calculate the electrical repulsion : Imagine two 5.0 g bags of protons, one at the earth's north pole and the other at the south pole. Calculate the electrical repulsion
Determine the charge on the outer surface of the shell : A conducting sphere that carries a total charge of -9.1 µC is placed at the center of a conducting spherical shell that carries a total charge of +1.7 µC. Determine the charge on the outer surface of the shell
At what vds will the device go into saturation : An NMOS operating in triode region with Vds=0.1V conducts 60μA forVgs=2V. The device conducts 160μA for Vgs=4V. Calculate Vt. IfKn'=25μA/V2 , what is the device W/L What current would flow for Vgs=3V and Vds=0.15V

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the free cash flow

However, competitive pressures and increased costs are expected to shrink margins to 11% in years 4 and 5.

  What is the present value of a security

What is the present value of a security which promises to pay you $5,000 in 20 years? Assume you can earn 7 percent if you were to invest in other securities of equal risk.

  Explain the trading techniques

Discuss and explain the trading techniques that can be used with financial futures noting how these securities can be used in conjunction with other investment vehicles including benefits and risks.

  Increasing the stock price

Several company have encouraged their employees to own stock in the corporation they work for. How would you describe to the employee the importance of his job in increasing the stock price?

  What is the new divisor

Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $90, $200, and $108, respectively. If Able undergoes a 2-for-4 reverse stock split. What is the new divisor?

  Calculate the profitability of the chester company account

Sales $15,000 Number of orders 160 Percent of orders marked rush .70 Calls to technical support 80 Required: Calculate the profitability of the Chester Company account.

  What is included in other comprehensive income

What is included in other comprehensive income? Why are items included in other comprehensive income, but not included in net income? Should these items be included in net income, or not included at all?

  Calculate the principal payment and interest payment

Consider a constant payment mortgage of $100,000, maturity thirty years, interest rate 6 percent, monthly payments.

  What is the quick ratio

You are analyzing a company that has cash of $11,200, accounts receivable of $27,800, fixed assets of $124,600, accounts payable of $31,300, and inventory of $56,900. What is the quick ratio.

  What is the break-even point for jackson

Each circuit board is sold at a price of $111.50 and involves variable costs of $81.73 per unit. What is the break-even point for Jackson.

  Discuss the effect of higher interest rates

Mike Lane will have $5 million to invest in 5 year United State Treasury bonds three months from now. Lane believes interest rates will fall during the next 3 months and wants to take advantage of prevailing interest rates by hedging against a declin..

  Are bank mergers and acquisitions good for the economy

Are bank mergers and acquisitions good for the economy? How about the shareholder? What impact will it have on the customer? Do customers gain value, perhaps through economies of scale? Is bigger necessarily better?

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