What is the net present value of assets depreciation

Assignment Help Financial Management

Reference no: EM131333593

Your company plans to purchase equipment which is depreciable under Straight Line rates without any fraction of the year convention in the 10-year class (i.e. regardless of the month of purchase the whole year's value will be depreciated). The initial value of the asset is $100,000. The salvage value of it is $0. Your company's tax rate is 38% and will not be affected by the asset. What is the Net Present Value of asset's depreciation with a 6% after-tax MARR? (Round to the nearest integer)

Reference no: EM131333593

Questions Cloud

What is value of firm under each of two proposed plans : Gael Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 185,000 shares of stock outstanding. Under Plan II, there would be 135,000 shares of stock ..

Which of the following was not handled by the juvenile court : In 2005, the U.SHistorically, which of the following was not handled by the juvenile court? Supreme Court ruled that the death penalty for offenders under the age of 18 at the time they committed their crime

Blame for commercial overexploitation : Blame for commercial overexploitation can be placed on the people who directly do the exploiting and those that buy the product - but which group deserves more of the the blame? Why? What is an example of a commercial relationship that exploits w..

Depths of a rectangular channel show : Depths of a rectangular channel show that hence the specific energy

What is the net present value of assets depreciation : Your company plans to purchase equipment which is depreciable under Straight Line rates without any fraction of the year convention in the 10-year class (i.e. regardless of the month of purchase the whole year's value will be depreciated). The initia..

Asexual and sexual reproduction : 1. Compare and contrast asexual and sexual reproduction. 2. Explain why both sexual and asexual reproductive strategies still exist (ie, why doesn't every organism reproduce sexually? Why doesn't every organism reproduce sexually?).

Markets require revisions to your capital budgeting analysis : Using Modigiliani and Miller’s Proposition II, determine the required return on unleveraged equity. Evaluate why violations of the Modigiliani and Miller assumptions of perfect markets require revisions to your capital budgeting analysis.

Compare the results to previous google search : Enter a search statement into the search box - keep it simple. Google automatically includes AND in searches, but you can include OR in a Boolean statement with parentheses (you can use your RL 1 statement if it does not include too many parenthe..

Introduction of the disease : What genetic diseases or problems were determined to be potential issues? Provide an introduction of the disease, outlining the major signs/symptoms of the disorder and the reason why this was selected as a genetic/inherited disease?

User Account

All Pages