Calculate after-tax cash flow at disposal

Assignment Help Financial Management

Reference no: EM131461938

Genetic Insights Co. purchases an asset for $10,680. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $4,496. Calculate After-Tax Cash Flow at disposal. Round the answer to two decimals

Reference no: EM131461938

Questions Cloud

Describe a practical application that demonstrates : Describe a practical application that demonstrates this classically conditioned association from your own life

Identify an economic crisis or turning point : Identify an economic crisis or turning point that had a significant impact on certain industries in the U.S. Explain why investing in international markets.

Which alternative is the cheapest source of financing : Which alternative is the cheapest source of financing for Hand-to-Mouth?

Calculate enthalpy change for reaction : Ethane burns in oxygen to produce carbon dioxide and water. Balance the equation and calculate enthalpy change (DH) for the reaction

Calculate after-tax cash flow at disposal : This asset qualifies as a seven-year recovery asset under MACRS. Calculate After-Tax Cash Flow at disposal

What are the cost savings when a company outsources : What are the Cost Savings when a company outsources? Establish the preliminary performance targets of service that will be required from the selected vendors.

What is the percentage increase in ebit : Warren's Hats forecasts that it will sell 25,000 baseball caps next year. The company buys its caps for $3 from the wholesaler and sells them for $15 each.

What is the value of the company : Janetta Corp. has an EBIT rate of $975,000 per year that is expected to continue in perpetuity. The unlevered cost of equity for the company is 14 percent.

Explain how these characteristics were developed : Using your life experiences, explain how these characteristics were developed

User Account

All Pages