Calculate After-Tax Cash Flow at disposal

Assignment Help Business Management

Reference no: EM133641467

Question

Reversing Rapids Co. purchases an asset for $159,866. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of year 4 for $13,020.

Calculate After-Tax Cash Flow at disposal.

Reference no: EM133641467

Questions Cloud

Taxation and link one form to situation in your life : Explain the different forms of taxation and link one form to a situation in your life (present or past).

Nancy smith portfolio : What do you suggest to be the best asset allocation for Nancy Smith's portfolio. Also, what is the expected annual return for the portfolio?

What is expected return of the portfolio : What is the expected return of the portfolio according to the CAPM?

Market capitalization : Nvidia's market capitalization is 1.80 trillion dollars. It has $ 11 billion debt outstanding. The 10-year Treasury bond yield is 4.5%.

Calculate After-Tax Cash Flow at disposal : Reversing Rapids Co. purchases an asset for $159,866. Calculate After-Tax Cash Flow at disposal.

Business owner increases contributions : Suppose when the account reaches $150,000, the business owner increases the contributions to $4,000 at the end of each quarter.

Lengths of expected and actual holding-periods : What are the lengths of the expected and actual holding-periods? Find the investor's realized return.

What is the single monthly mortality rate : The mortgage pool has a conditional prepayment rate of 6%. What is the single monthly mortality rate?

Percentage return on total cost under the revised proposal : What is the percentage return on total cost under the revised proposal? Is the revised proposal financially feasible?

User Account

All Pages