After-tax cash flow from the sale of this asset

Assignment Help Financial Management

Reference no: EM131058562

Consider an asset that costs $176,000 and is in a seven-year MACRS class. The asset is to be used in a 7-year project; at the end of the project, the asset can be sold for $22,000. The relevant tax rate is 30 percent. What is the after-tax cash flow from the sale of this asset?

Reference no: EM131058562

Questions Cloud

Experiencing rapid growth-stock price : Navel County Choppers Inc. is experiencing rapid growth. The company expects dividends to grow at 17 percent per year for the next 12 years before leveling off at 6 percent into perpetuity. The required return on the company’s stock is 12 percent. If..

How much did the boulder weigh : A crane does 62,500 Joules of work to lift a boulder a distance of 25.0 meters. How much did the boulder weigh? (Hint: The weight of an object is considered to be a force if units of newtons.)

Identify two social groups with identifiable similarities : Identify two social groups or populations with identifiable similarities and differences (for example, two different religious groups, two different Hispanic groups, two different family structure groups). Provide an overview of the similarities a..

Charged capacitor to discharge through the resistor : The switch in the circuit below is closed allowing the fully charged capacitor to discharge through the resistor. The time constant of this circuit is 1.5s. (a) After how much time did the charge on the capacitor drop to 0.75% of its maximum value?

After-tax cash flow from the sale of this asset : Consider an asset that costs $176,000 and is in a seven-year MACRS class. The asset is to be used in a 7-year project; at the end of the project, the asset can be sold for $22,000. The relevant tax rate is 30 percent. What is the after-tax cash flow ..

Beam of square cross section : In 1913 the Woolworth Building in New York City was constructed. It was the tallest building in the world until 1930. On floor 36 a steel beam of square cross section (6 centimeters on a side) and length 10 meters was suddenly loaded with a 2,0..

What do the terms islam and muslim mean : Compare and contrast the life of the Prophet Muhammad with the life of Jesus, as presented by Young in our textbook. What similarities or differences stand out?

Factors that promote the development of ethical leadership : What is an ethical leader and how do ethical leaders differ from other leaders? What are the factors that promote or hinder the development of ethical leadership in organisations

Recent advances in genetics-development : Using the internet and Strayer databases choose three (3) recent advances in genetics, development, and geology and explain two (2) ways your chosen advances have enriched our understanding of evolution. Next suggest two (2) ways that new sources ..

User Account

All Pages