What will be the effect on cash flows of sale

Assignment Help Financial Management

Reference no: EM132041109

1. Project L costs $45,000, its expected cash inflows are $13,000 per year for 11 years, and its WACC is 11%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

2. Suppose you sell a fixed asset for $124,000 when it's book value is $153,000. If your company's marginal tax rate is 15%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)? $128,350 $24,650 $153,000 $29,000

Reference no: EM132041109

Questions Cloud

Zero-coupon bond-what is the bond price today : A zero-coupon bond has a $1000 par value, and has 10 years to maturity. What is the bond's price today?

What was the cash received from customers : The ending balance in accounts receivable equals $ 2,000. What was the cash received from customers?

What is the future value at the end : What is the future value at the end of year 10 of an annuity with 10 annual payments of 500 that start today, if the interest rate of the annuity is 6% per year

What is the yield to maturity : A bon with value of 1,000 has 16 years until maturity, carries a coupon rate of 5.8%, and sells for 1,109. What is the Yield to maturity?

What will be the effect on cash flows of sale : If your company's marginal tax rate is 15%, what will be the effect on cash flows of this sale?

The certainty of revenue and access to capital markets : In recent years, the healthcare industry has experienced significant turmoil in the certainty of revenue and access to capital markets.

How much will be in your account after 10 years : How much will be in your account after 10 years? Round your answer to the nearest cent.

What is the deductible amount of these expenses : The CEO paid $1,220 for an expensive dinner and spent $600 for tickets to the game. What is the deductible amount of these expenses?

What technique can be used to adjust differences : What are the differences between the dollars used for Investment and the cash flows to be realized in the future.

User Account

All Pages