User Account

All Pages

After-tax present worth of the car

Assignment Help Business Economics
Reference no: EM13903813

A car is purchased for $40000 at a CCA rate of 20% (depreciation = CCA rate), corporate tax rate of 30%, current intrest rate is 12.2%, inflation is 2%, with a salvage value of $4000 after its 8 year service life:

a. What is the after-tax present worth of the car?

b. What is the Equivalent Annual Cost (EAC) of the car in its first year?

Reference no: EM13903813

Questions Cloud

Show in outline journal entries a company makes to record : Show in outline the journal entries a (profitable) company makes to record: its income tax liability for the year, without the R&D tax credit; the impact of the R&D tax credit on its income tax liability.
The chinese government from search results : 1. (a) Assume that you work as the senior vice president for international markets for Google. Your job is to prepare the company for its move into China. During negotiations with Chinese officials, you are given the following ultimatum: remove all l..
The average number of bookings for each type of room : Guest (guestNO, guestName, guestAddress)Question:  How do I write an SQL Query (mysql) that would give me  "the average number of bookings for each type of room?"
Ensuring that the team gives excellent performance : Suppose you are the Team Manager in a multinational company with team strength of 10 members. You are given the responsibility of ensuring that the team gives excellent performance or results. What are the key issues you have to handle in team bui..
After-tax present worth of the car : a. What is the after-tax present worth of the car? b. What is the Equivalent Annual Cost (EAC) of the car in its first year?
How many girls are in a group that has 16 boys : A grade has 81 girls and 72 boys. The grade split into groups that have the same ratio of girls to boys as the whole grade. How many girls are in a group that has 16 boys
Substitution and elimination can be competing reactions : In the reaction of 2-chloro-2-methylpropane with AgNO3 in ethanol, the ether will not be the only product of this reaction. What other product could form and what is the reaction mechanism for this reaction? Hint: remember that substitution and elimi..
What was the carrying amount in the books of bestfoods : What was the carrying amount in the books of Bestfoods - of the net assets  acquired  in 2000? What was the main reason for the negative accounting policy adjustment of a1.1 billion to Bestfoods' intangible assets?
Explain in a detailed stepwise arrow pushing mechanism : Explain in a detailed stepwise arrow pushing mechanism showing why when cyclopentene is treated with Br2 that trans-1,2-dibromocyclopentane is the major product at low temperatures but at high temperatures a racemic mixture of 3-bromocyclopentene is ..

Reviews

Write a Review

Business Economics Questions & Answers

  Use the concepts of elasticity to maximize profit

Price elasticity of demand is an important tool for managers in a selling environment in decision what to put on sale. Discuss how managers of over the counter health care products could use the concepts of elasticity to maximize profit.

  What type of organizational structure is the company current

What type of organizational structure is the company currently using?

  What is the dollar value of the deadweight loss

What is the dollar value of the deadweight loss when output level Q3 is produced? What is the total surplus when output level Q3 is produced?

  Firm is in a competitive industry

Can you tell whether this firm is in a competitive industry. If so, can you tell whether the industry is in a long-run equilibrium.

  Explain how does us government correct for this apparent

Explain how does the U.S. Government correct for this apparent market failure.

  Standard deviation of demand during replenishment lead time

Silly Sally sells sea shells at the Sea Shore Store. The average and standard deviation of demand during replenishment lead time is 60 and 10?units, respectively. If Sally places an order at the end today when she has 65 units on hand what is the pro..

  Effort to avoid the adverse selection death spiral

In an effort to avoid the adverse selection death spiral, a private health insurer offers two health insurance policies: one that is intended for those who are more likely to require expensive treatment (and therefore charges a higher premium) and on..

  International trade protectionism

In this forum we discuss the different arguments that are made in favor of international trade protectionism and the important role of the politics of protectionism.

  Provide one quote and its context for both a positive and

Locate recent articles in the New York Times or Wall Street Journal in which economists are quoted using positive and normative statements.

  An increase in the aggregate demand for goods and services

An increase in the aggregate demand for goods and services has a larger impact on output ________ and a larger impact on the price level ________.

  What factors might account for the increase in the earnings

What factors might account for the increase in the earnings of college-educated workers vis-vis high school graduates and dropouts over the last three decades?

  Compare the variance of the estimator of the slope term

Suppose that classical least squares assumptions apply and the true value of intercept term or is 0 in following model: yi=alpha + beta xi + epsilon i, Now estimate this model with and without an intercept term and compare the variance of the est..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd