Calculate the present value of the cca tax shield

Assignment Help Finance Basics
Reference no: EM132674868

Calculate the present value of the CCA Tax Shield for an asset costing $ 200,000 , CCA Rate of 25 % Salvage Value of $ 8000 , tax rate of 35 % a cost of capital discount rate of 12 % , and a 20 year term (or life)

Reference no: EM132674868

Questions Cloud

What is the npv of buying the new lathe : What is the NPV of buying the new lathe? (Round your answer to the nearest cent.)
BPS2113 OSH Management System Assignment : BPS2113 OSH Management System Assignment Help and Solution, Muscat College - Assessment Writing Service - OSHMS Audit
Explain which company would be considered best investment : Compare the ratio results of the two businesses. Based on your analysis, identify and explain which company would be considered the best investment.
Calculate the pe ratio for company : Recently, a share of Coca-Cola stock sold for about $43 a share. It's earnings per share at that time was $0.29 for the year. At the same point in time
Calculate the present value of the cca tax shield : Calculate the present value of the CCA Tax Shield for an asset costing $ 200,000
Prepare sy statement of cash flows for the year ended june : The information relates to SY Traders for the year ended 30 June 2020. Prepare SY's Statement of Cash Flows for the year ended 30 June 2020.
Explain five assets on bank statement of financial position : List and explain five assets on a bank's statement of financial position. Why are these items considered as assets?
Calculate lg eps and roe for capital structure : Calculate LG's EPS and ROE for each capital structure. Which capital structure is better?
What is the one-year forward rate that should prevail : As of today, the spot exchange rate is €1.00 = $1.25 and the rates of inflation expected to prevail for the next year in the U.S. is 2 percent and 3 percent in

Reviews

Write a Review

Finance Basics Questions & Answers

  Describe some applications and uses of binomial model

Why is the binomial model a useful technique for approximating options prices from the Black-Scholes-Merton model? Describe some applications and uses.

  What are the effects on income per person

What are the effects on income per person (Gross National Product or GNP per person in the report) from reducing the deficit under various scenarios

  Calculate the prime cost per cleaning

Costs of ServicesJean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service.

  How much will each annual payment be

You need to accumulate $115,557 for your son's education. You have decided to place equal year-end deposits in a savings account for the next 7 years.

  What is the expected return on the portfolio

What are the expected returns on Stock J and Stock K individually?

  Calculate the present value of stock

Calculate the present value of this stock. What will be the new price of this stock if the discount rate rises to 12%? What will be the new price of this stock if the discount rate falls to 10%?

  Greatest long-term potential china or russia

Based on land, minerals and natural resources, labor and entrepreneurial innovation, which country do you feel has the greatest long-term potential China.

  What is the capital structure weight

Based on the following info, please consider the following 2 questions A. What is the capital structure weight of equity on a book value basis?

  What was your realized return

You bought a stock one year ago for $51.96 per share and sold it today for $59.14 per share. It paid a $1.73 per share dividend today.

  Prepare capital budgeting for a proposed takeover

Following advice from an agent in Vietnam TNA have an opportunity to purchase a majority interest in a small local firm that manufactures equipment for the food processing and packaging industry.

  Morgantown movers has net working capital of 11300 current

morgantown movers has net working capital of 11300 current assets of 31200 equity of 53400 and long-term debt of 11600.

  What is the accumulated sum

What is the accumulated sum of the following stream of payments?

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!

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