Compute the after-tax rate of return for the dyce truck

Reference no: EM131931769

Problem

The Ogi Corporation, a construction company, purchased a used pickup truck for $22,000 and used MACRS depreciation in the income tax return. During the time the company had the truck, they estimated that it saved $8000 a year. At the end of four years, Ogi sold the truck for $5000. The combined federal and state income tax rate for Ogi is 30%. Compute the after-tax rate of return for the Dyce truck.

Reference no: EM131931769

Questions Cloud

How you would position the company to move forward socially : The role of Chief Strategist for Life is Good and explain how you would position social responsibility to further both their social and strategic goals.

Explain why you agree or disagree with model listener : Describe the listening characteristics of an individual (personal or professional) who you consider to be an effective listening role model for you.

What is variable overhead efficiency variance for december : Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours. What is the variable overhead efficiency variance for December?

What are the two distinct types of health insurance payment : According to Weisbrod (1991), what are the two distinct types of health insurance payment mechanisms and how?

Compute the after-tax rate of return for the dyce truck : The Ogi Corporation, a construction company, purchased a used pickup truck for $22,000 and used MACRS. Compute the after-tax rate of return for the Dyce truck.

Calculate the best order quantity and reorder point : Assume that demand variability follows a Poisson distribution and that the desired service level is 98% probability of not stocking out.

How should she and her company address the possible problems : Given the fact that each of its stores has only a handful of em- ployees, is her company covered by equal rights legislation?

Compute odd wallow drinkss breakeven point in units per year : dd Wallow Drinks is considering adding a new line of fruit juices to its merchandise products. Compute Odd Wallow Drinks's break-even point in units per year.

Are the actions by the company legal : Union Busting Plastico Corporation hears through the "grapevine" that its employees are unhappy with the working conditions and wages being paid.

User Account

All Pages