After tax present worth of the investment

Assignment Help Financial Management

Reference no: EM132058756

A $400,000 investment in a surface mount placement machine produces pre-tax revenue of $47000/yr for 10 years, at which time the SMP machine has a salvage value of $100,000. Based on a 25% income tax rate, a 12% after tax MARR, & SLN depreciation,

What will be the ATPW (After Tax Present Worth) of the investment?

Reference no: EM132058756

Questions Cloud

What would the cost of equity be : What would the cost of equity be if the debt–equity ratio were .5? What would the cost of equity be if the debt–equity ratio were zero?

Major drone manufacturer is currently all equity financed : Dronalution, Inc. a major drone manufacturer is currently all equity financed.

He anticipated transaction exposure : Describe how SLD limited can use money market hedge to insulate itself from the anticipated transaction exposure.

Explain evolving market regimes and their outcomes : Identify and explain evolving market regimes and their outcomes.

After tax present worth of the investment : What will be the ATPW (After Tax Present Worth) of the investment?

Calculate the internal rate of return of each project : If two projects are mutually exclusive, which project should be accepted? 7.3. Calculate the internal rate of return of each project.

Explain the main types of exchange rate risk : Evaluate and explain ideal currency. Explain the main types of exchange rate risk.

Your understanding of how leverage affects firm value : These questions are designed to develop your understanding of how leverage affects firm value.

Euro currency markets to set up money market hedge : Discuss how kilpatrick limited can use the euro currency markets to set up a money market hedge to insulate itself from the anticipated transaction exposure.

User Account

All Pages