Compute the after-tax cash flow for each calendar year

Reference no: EM131959148

Question: A company purchased $50,000 worth of computer equipment for a new research contract. The equipment was purchased on January 15, 2015 and will be sold on June 1, 2017. The equipment will provide an income of $16,000 for 2015, $16,000 for 2016, and $10,000 for 2017. The company can sell the used equipment for $30,000. If MACRS depreciation is used, and the company has an incremental income tax rate of 40%, compute the after-tax cash flow for each calendar year the equipment is owned.

Reference no: EM131959148

Questions Cloud

What is the company free cash flow for the fiscal year : A company paid out $1,000,000 in dividends to shareholders in the most recent fiscal year while also increasing the retained earnings by $2,000,000.

What is the value of your account : You paid 50 cents per share in commissions for each transaction. What is the value of your account?

Capillary inserted at degrees into the water : OR a 1.5-mm capillary inserted vertically into the water.OR a 2-mm capillary inserted at 30 degrees into the water

Determine the following account balances : On January 1, 2015, Brooks Corporation exchanged $1,182,500 fair-value consideration for all of the outstanding voting stock of Chandler, Inc.

Compute the after-tax cash flow for each calendar year : A company purchased $50,000 worth of computer equipment for a new research contract. The equipment was purchased on January 15, 2015 and will be sold on June 1.

What is the total cost of the building : On January 1, 2016, the company obtained a $3,800,000 construction loan with a 15% interest rate. The loan was outstanding all of 2016 and 2017.

Computing the firm after-tax component cost of debt : A company's 6% coupon rate, semiannual payment, $1,000 par value bond that matures in 25 years sells at a price of $601.14. The company's federal-plus-state.

List all the functional dependencies exist in therelation : List all the functional dependencies exist in therelation. Demonstrate that the relation meets Third Normal Form (3NF).

Calculate the current value of the hypothetical stock : A company has just paid a dividend of £x. The dividends are expected to grow at a higher rate r1 per year for the next n1 years and at a lower rate r2 per year.

User Account

All Pages