Calculating salvage value

Assignment Help Financial Management
Reference no: EM131887059

Calculating Salvage Value

Consider an asset that costs $404,800 and is depreciated straight-line to zero over its 10-year tax life. The asset is to be used in a 6-year project; at the end of the project, the asset can be sold for $50,600.

Required :

If the relevant tax rate is 34 percent, what is the aftertax cash flow from the sale of this asset? (Do not round your intermediate calculations.)

Reference no: EM131887059

Questions Cloud

Find the probability that the sum of the 80 values : Find the probability that the sum of the 80 values (or the total of the 80 values) is more than 7400.
Explain the pathophysiology behind the condition : Explain the pathophysiology behind the condition. What would be a possible neurologic or musculoskeletal condition causing the symptoms?
Compute the effective annual interest rate of the loan : Compute the effective annual interest rate of the loan.
What is the best predicted iq of the twin born : What is the best predicted IQ of the twin born first twin born first?, given that the twin born second twin born second has an IQ of 106??
Calculating salvage value : Consider an asset that costs $404,800 and is depreciated straight-line to zero over its 10-year tax life.
What are the current controversies : Parkinson's disease is a progressive neurodegenerative disorder. Share your thoughts on the evolving therapies. What are the current controversies?
Market believe will be stock price at the end of three years : You are considering an investment in Justus Corporation's stock, what does the market believe will be the stock price at the end of 3 years?
Discuss the challenges that you might encounter : Discuss the challenges that you might encounter in using a mixed methods approach. Support your discussion using current mixed methods research articles.
Enough evidence to support the instructor claim : With a = 0.05, is there enough evidence to support the instructor's claim? Does your answer change if a = 0.01? Why or why not?

Reviews

Write a Review

Financial Management Questions & Answers

  List the model of desired hardware devices and their cost

List the make and model of desired hardware devices and their cost. Use no more than two sheets in one workbook to display required data.

  What is the current value of the future payments

Mrs. Crawford will receive $8,800 a year for the next 19 years from her trust. what is the current value of the future payments?

  Compute earnings per share immediately before stock issue

Compute the net proceeds to the Presley Corporation. Compute the earnings per share immediately before the stock issue.

  What is the yield to maturity on treasury strips

What is the yield to maturity on a Treasury STRIPS with 11 years to maturity and a quoted price of 63.695?

  Compute the current price of the stock

You are considering purchasing stock in a company. the company is planning to offer the following dividends over the next 3 years ($10, $15, $20) you required rate of return is 10% for your investment. compute the current price of the stock.

  Project is expected to create operating cash flows

A project is expected to create operating cash flows of $33,000 a year for three years. The initial cost of the fixed assets is $68,000. These assets will be worthless at the end of the project. An additional $4,500 of net working capital will be req..

  Net present value of the aftertax benefits

Assuming a discount rate of 8%, calcualte the net present value of the aftertax benefits. Sandras life expectancy is 20 more years, and she could receive an annuity of $35,000 a year for the next 20 years. Because her annual income would be relat..

  Geometric average returns-arithmetic average returns

Your to geometric average returns are ........ per year while your arithmetic average returns

  What interest rate compounded annually-does this represent

What interest rate, compounded annually, does this represent?

  Evaluate the purchase of a proposed spectrometer

You must evaluate the purchase of a proposed spectrometer for the R&D department. What is the initial investment outlay for the spectrometer.

  What is the change in price bond will experience in dollars

What is the change in price bond will experience in dollars

  Compute the cost of capital for the firm

Individual or component costs of capital) Compute the cost of capital for the firm for the following: A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 10.8 percent. Interest payments are $54.00 and are paid se..

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