Compute the after-tax cash flows

Assignment Help Biology
Reference no: EM132417974

Problem: A firm has invested $30000 in equipment with a 5-year useful life. The machinery will have no salvage value. The annual benefits from the machinery are $7000 for the first year and increase by $1000 per year. Assume a combined 40% income tax rate, and straight-line depreciation.

Required:

a. Compute the after-tax cash flows during the life of the machinery?

b. If the firm's MARR is 9%/year, is the investment attractive? Why or why not?

Reference no: EM132417974

Questions Cloud

How many copies of the software should i attempt to sell : How many copies of the software should I attempt to sell? At what price should I sell it? How much profit would I make?
What is the leverage-adjusted duration gap of final four : The assets are financed with a face value of $900,000, 2-year, 7.25 percent annual coupon capital note selling at par in addition to equity capital.
Calculating an ira accumulation : When Jamal graduated from college recently, his parents gave him $1,000 and told him to use it wisely. Jamal decided to use the money to start a retirement
Strategies you would employ to recruit 300 students per year : What strategies you would employ to recruit 300 students per year and Strategy should include visual aids - prepare a marketing strategy for Employment Training
Compute the after-tax cash flows : a. Compute the after-tax cash flows during the life of the machinery? b. If the firm's MARR is 9%/year, is the investment attractive? Why or why not?
Provide a groves-clarke mechanism : Provide a Groves-Clarke mechanism (step by step) to achieve an efficient outcome. Explain who the pivotal person(s) is and calculate the tax for each pivotal
What is an export oriented development strategy : What is an export oriented development strategy? What are the hurdles for a country that would like to adopt such a policy of growth?
Define offshore finance : Define offshore finance, and explain how it facilitates both tax evasion and money laundering, using one or both of the papers, as well as the KOM
Explain how iceland floating exchange rate allowed : Explain how Iceland's floating exchange rate allowed for immense appreciation of the ISK in the lead-up to the 2008 crisis.

Reviews

Write a Review

Biology Questions & Answers

  Explain why the abo blood types are an example

Explain why the ABO blood types are an example of codominance? Be sure to briefly define codominance in your answer.

  Hat are the major food sources of iron

What are the major food sources of iron? Define hemoglobin. Define iron-deficiency anemia. What are the major minerals found in bones and teeth?

  Determine the number of significant figer

determine the number of significant figer in the following measurment [ 12.3 ml and 2.3 g and 5.877 micrometer] then round the number 56.877 to the following number of significant figures [4 and 3 and 2]?

  Various cardiovascular diseases

High cholesterol levels in the blood (hypercholesterolemia) is associated with various cardiovascular diseases such as atherosclerosis.

  How do strawberry plants reproduce vegetatively

How do strawberry plants reproduce vegetatively and The method of asexual reproduction used by many flowering plants is called

  Explain this paradox

In cells, an enzyme catalyzes the reaction AB --> A + B. However, it was discovered as an enzyme that carries out the reverse reaction A + B --> AB. Explain this paradox.

  Mr ally went to the eye doctor and complained about dark

mr. ally went to the eye doctor and complained about dark areas in his vision. he had never noticed it before. there is

  A written summary of the required reading assignments will

a written summary of the required reading assignments will be due on the assigned due dates in the course calendar.

  Describe how dna is packaged to fit into a cell

Describe how DNA is packaged to fit into a cell. What are the fundamental building blocks of DNA and how are they bonded together?

  Calculate the shannon weiner diversity index

You are studying 2 wetlands in eastern Ohio - one that has become highly invaded by purple loosestrife. These wetlands typically contain over one hundred species.

  What are some possible harmful effects

What reasons would you give her to steer clear of the regime? What are some possible harmful effects?

  State and federal statutory and regulatory enactments

as senior members of the human resources team you have been asked to give a presentation on the state of the union to

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