What will be the effect on cash flows of sale

Assignment Help Financial Management

Reference no: EM132037901

Suppose you sell a fixed asset for $118,000 when it's book value is $141,000. If your company's marginal tax rate is 28%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

Reference no: EM132037901

Questions Cloud

What would be firm cost of equity based on capm approach : If the firm's beta is 0.6, the risk-free rate is 4%, then what would be the firm's cost of equity based on the CAPM approach?

What is the firm cost of capital : If CB's beta is 20% greater than the overall market, what is the firm's cost of capital? Assume that CB has a marginal tax rate of 40%.

How would you hedge position where you sell put option today : What is the option price today? How would you hedge a position where you sell the put option today?

Use two-step tree to value european call option : Use a two-step tree to value a European call option on the stock with a strike price of $60 that expires in 6 months.

What will be the effect on cash flows of sale : Suppose you sell a fixed asset for $118,000 when it's book value is $141,000. what will be the effect on cash flows of this sale

Perform two parameter btcf sensitivity analysis : Perform a two parameter BTCF sensitivity analysis to determine the range in which these two parameters could vary to have a PW>0.

What is the standard deviation of portfolio : If you invest 80% in Visa and 20% in Walmart, what is the variance of the portfolio? What is the standard deviation of the portfolio?

Considering new inventory system : Siegmeyer corp. is considering a new inventory system that will cost $750,000.

All-equity plan and levered plan : Kyle Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II).

User Account

All Pages