What is your incremental cash flow from selling the machine

Assignment Help Financial Management
Reference no: EM13911541

You purchased a machine for $1.06 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 35%. If you sell the machine today (after three years of depreciation) for $779,000, what is your incremental cash flow from selling the machine?

Your total incremental cash flow will be $_______

Reference no: EM13911541

Questions Cloud

The bonds pay interest on an annual basis on june : On July 1, 2013, $6 million face amount of 7%, 10 year bonds were issued.
What is estimate of ironores price and earnings ratio : Ironore Limited is an iron mining company whose mines are slowly being depleted (i.e., little by little, the amount of iron ore available in the mine is declining as the ore is extracted each year). What is your estimate of Ironore’s Price/Earnings r..
What is your estimate of stock price today : The Yubaba Company has so far not paid a dividend on its stock. Investors believe that the Company won’t pay a dividend next year, but that it will pay dividends starting two years from now. The dividend then is expected to be $0.20 per share. What i..
Investors expect the dividend to grow : Zeniba Inc.’s stock is currently selling for $23.56 per share. The company just paid a dividend = $2.00 per share (i.e., D0 = $2.00), and investors expect the dividend to grow at a constant rate out into the future. Investors require a minimum annual..
What is your incremental cash flow from selling the machine : You purchased a machine for $1.06 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 35%. If you sell the machine today (after three years of depreciation) for $779,000, what is y..
What is cost of equity if you ignore taxes : Alpha company has a debt-equity ratio of .6, a pretax cost of debt of 7.5%, and an unlevered cost of equity of 12%. What is Alpha's cost of equity if you ignore taxes?
What is the growth rate of dividends per share : Zeniba Inc.’s stock is currently selling for $23.56 per share. The company just paid a dividend = $2.00 per share (i.e., D0 = $2.00), and investors expect the dividend to grow at a constant rate out into the future. Investors require a minimum annual..
Projects expected NPV on basis of the scenario analysis : Heywood Diagnostic Enterprises is evaluating a project with the following net cash flows and probabilities: What is the project’s expected NPV on the basis of the scenario analysis? What is the projects standard deviation of NPV?
Cash flow for project with the data : As assistant to the CFO of Boulder Inc., you must estimate the Year 1 cash flow for a project with the following data. What is the Year 1 cash flow? Sales revenues $13,600 Depreciation $4,000 Other operating costs $6,000 Tax rate 35.0%

Reviews

Write a Review

Financial Management Questions & Answers

  Compute their itemized deduction for medical expenses

Mr. and Mrs. Moss, ages 70 and 64, have major medical and dental insurance provided by Mrs. Moss's employer. This year, they incurred the following unreimbursed expenses: Routine office visits to doctors and dentists ...$940 Emergency room visits...4..

  To calculate the number of years until maturity

To calculate the number of years until maturity, assume that it is currently January 15, 2013. Company (Ticker) Coupon Maturity Last Price Last Yield EST $ Vol (000’s) Xenon, Inc. (XIC) 5.500 Jan 15, 2021 94.193 ? 57,363 Kenny Corp. (KCC) 7.130 Jan 1..

  Explain the firm''s cash flow due to financing activities

At the end of the year, Tum Biscuit Co. had $160 million in cash on its balance sheet, and the firm had $305 million in cash at the end of the second year. What was the firm's cash flow (CF) due to financing activities in the second year?

  Extend credit to customers with high probability of default

A firm with ______ profit margin should extend credit to customers with a high probability of default.

  Developing a balanced scorecard explore the need for

developing a balanced scorecard explore the need for organisations to calculate and manage performance against

  Use the replicating-portfolio method to value this call

Over the coming year Ragwort’s stock price will halve to $50 from its current level of $100 or it will rise to $200. The one-year interest rate is 10%. What is the delta of a one-year call option on Ragwort stock with an exercise price of $100? Use t..

  Invest in a new computer system

Walker & Campsey wants to invest in a new computer system, and management has narrowed the choice to Systems A and B. System A requires an up-front cost of $100,000, after which it generates positive after-tax cash flows of $60,000 at the end of each..

  Some additional land and build a new assisted living center

Meadow Brook Manor would like to buy some additional land and build a new assisted living center. The anticipated total cost is $20.5 million. How long does the company have to wait before expanding its operations?

  Discuss the following topic should investors care about a

discuss the following topic should investors care about a multinational firms accounting exposure?accounting exposure

  How much will your dream house cost by the time

You hope to buy your dream house six years from now. Today your dream house costs $189,900. You expect housing prices to rise by an average of 4.5% per year over the next six years. How much will your dream house cost by the time you are ready to buy..

  What is the expected return of a stock with a beta

A certain stock has a beta of 1.5. If the risk-free rate of return is 5.1 percent and the market risk premium is 8.6 percent, what is the expected return of the stock? What is the expected return of a stock with a beta of 1.27?

  What was most recent dividend per share paid on the stock

Mustaine Corporation stock currently sells for $79 per share. The market requires a return of 9.6 percent on the firm’s stock. If the company maintains a constant 2.8 percent growth rate in dividends, what was the most recent dividend per share paid ..

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