After-tax cash flow be from the equipment sale

Assignment Help Financial Management
Reference no: EM131062792

Today, Litchfield Design purchased a piece of equipment for 134,000 dollars that will be depreciated to 8,000 dollars over 18 years using straight-line depreciation. What would the after-tax cash flow be from the equipment sale if the equipment is sold in 12 years for 91,000 dollars and the tax rate is 30 percent?

Reference no: EM131062792

Questions Cloud

What is the present value of the annuity : A 15-year annuity pays $2,150 per month, and payments are made at the end of each month. If the interest rate is 9 percent compounded monthly for the first eight years, and 6 percent compounded monthly thereafter, what is the present value of the ann..
Saved at retirement in order to be able to fund retirement : At your age (assume 20) you can assume that you will live to be 100. If you graduate at 23 and start to work, you can expect to work for 47 years, until age 70. At that time you will be eligible for full Social Security benefits, which can reasonably..
Three securities comprise of the risk-free asset : You have invested $41,330 portfolio in three securities. The three securities comprise of the risk-free asset, Stock A, and Stock B. The beta of stock A is 2 while the beta of stock B is 0.6. 26% of the portfolio is invested in the risk-free security..
What is the firm inventory conversion period : On average, a firm purchases $2,000,000 in merchandise a month. It has inventories equal to two month purchases on hand at all times. If the firm analyzes its accounts using a 360-day year, what is the firm’s inventory conversion period?
After-tax cash flow be from the equipment sale : Today, Litchfield Design purchased a piece of equipment for 134,000 dollars that will be depreciated to 8,000 dollars over 18 years using straight-line depreciation. What would the after-tax cash flow be from the equipment sale if the equipment is so..
What amount would the insurance company pay : For each of the following situations, what amount would the insurance company pay?
What amount of the claim would not be covered by insurance : Most home insurance policiesarrow-10x10.png cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insurance. If $5,900 worth of jewelry and $7,200 worth of silverware were stolen from a family, what amount of the..
Different for particular asset at particular point in time : What is the difference between the expected rate of return and the required rate of return? What does it mean if they are different for a particular asset at a particular point in time?
Journalize the closing entries on of the general journal : Journalize the closing entries on page 9 of the general journal. Post the closing entries to the general ledger. Prepare a post-closing trial balance.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the external financing need if sales increase

The 2012 balance sheet of Bianchi brickyards, which is operating at full capacity, reported current assets of $8,790, net fixed assets of $29,400, current liabilities of $3,705, long-term debt of $13,200, common stock of $15,000 and retained earnings..

  What is the definition of a heuristic decision method

What is the definition of a heuristic decision method? What might be a heuristic method for hiring someone? Explain and justify your logic

  Fixed-rate mortgage-loan in form of single balloon payment

You need a 35-year, fixed-rate mortgage to buy a new home for $245,000. Your mortgage bank will lend you the money at an APR of 5.4 percent for this 420-month loan. However, you can afford monthly payments of only $850, so you offer to pay off any re..

  Journal of economic perspective

Write a summary of the attached Article by Mishkin, Frederic S - Over the Cliff: From the Subprime to the Global Financial Crisis';

  What is the percentage change in the price for each bond

A bond trader purchased each of the following bonds at a yield to maturity of 8%. Immediately after she purchased the bonds, interest rates fell to 7%. What is the percentage change in the price for each bond after the decline in interest rates?

  What was the firms cash flow to creditors

The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,410,000, and the December 31, 2014, balance sheet showed long-term debt of $1,600,000. The 2014 income statement showed an interest expense of $95,000. Required: What w..

  How has the agency relationship changed since the ipo

Facebook went public in 2012. Was there any agency conflict prior to that time? Is there a conflict now? How has the agency relationship changed since the IPO?

  Dividend payout ratio-what is the sustainable growth rate

Last year a firm had an ROE of 6% and a dividend payout ratio of 80%. What is the sustainable growth rate?

  What is the current value of this investment

An investment offers $10,000 a year for 20 years. If an investor can earn 6 percent annually on other investments, what is the current value of this investment? If its current price is $120,00, should the investor buy it?

  Estimated that the initial cost of the equipment

Mideque, Inc., is considering a project to produce pens. It is estimated that the initial cost of the equipment, including transportation, installation, and so forth, will be $24,000. Mideque also estimates that the revenues (sales) each year over th..

  What is the bonds price

Nungesser Corporation's outstanding bonds have a $1,000 par value, a 8% semiannual coupon, 14 years to maturity, and an 11% YTM. What is the bond's price? Round your answer to the nearest cent.

  Explain how bonds and stocks are similar

Explain how bonds and stocks are similar. Explain how bonds and stocks are different. Explain how bonds are valued. From the information obtained through your research which investment would work the best for you: bonds or stocks? Explain

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