After-tax cash flow effects of selling

Reference no: EM13979560

Five years ago, the Mori Foods Company acquired a bean processing machine. The machine cost $30,000 and is being depreciated using the straight-line method over a 10-year period to an estimated salvage value of $0. A new, improved processor is now available, and the firm is considering making a switch. The firm's marginal tax rate is 40 percent. What are the after-tax cash flow effects of selling the old processing unit if it can be sold for the following prices? $15,000.

Reference no: EM13979560

Questions Cloud

What is the appropriate discount rate : What is the appropriate discount rate to use when evaluating the new project?

Proposal for a new stock : Suppose that, the president, receives a proposal for a new stock. The in-vestment needed to take a position in the stock is $50 million, it will have anexpected return of 15 percent, and its estimated beta coecient is 2.0.

What is net change in internal energy of the gas in piston : An ideal gas in a piston is placed in a refrigerator, which removes 525 J of energy from the gas via cooling. The plunger on the piston is pushed down, which does 121 J of work on the gas. What is the net change in the internal energy of the gas in..

Apply critical thinking skills to analyze business situation : Discuss and explain when and why participation should be used to improve leadership effectiveness.

After-tax cash flow effects of selling : A new, improved processor is now available, and the firm is considering making a switch. The firm's marginal tax rate is 40 percent. What are the after-tax cash flow effects of selling the old processing unit if it can be sold for the following pr..

What will be the new pressure in the gas : An ideal gas is at pressure 1*105N/m^2 and occupies a volume 5m^3 .If the gas is compressed to a volume 1m^3 while the temperature remains constant, what will be the new pressure in the gas?

Calculate the mass of the piece of aluminum sheet : Calculate the mass M of the piece of aluminum sheet shown in the figure above. Calculate the x-coordinate of the center of mass of the piece of aluminum sheet shown in the figure.

Understand the concepts of web application development : Understand the concepts of web application development - Discuss various features and advantages of web application development and how they relate to the business model of your choice.

How long after closing switch will it take for stored energy : An ideal solenoid is 18.5 cm long, has a circular cross-section2.20 cm in diameter, and contains 545 equally spaced thin windings.This solenoid is connected in a series circuit with a 15.0Ω resistor, a battery of internal resistance 5.00 Ω and open..

User Account

All Pages