Compute the after-tax rate of return for the truck

Assignment Help Financial Management

Reference no: EM131910774

The BVM Corp., a construction company, pur- chased a used hybrid electric pickup truck for $30,000 and used MACRS depreciation in the income tax return. During the time the company had the truck, they estimated that it saved $9500 a year. At the end of 4 years, BVM sold the truck for $9000. The combined federal and state income tax rate for BVM is 40%. Compute the after-tax rate of return for the truck.

Reference no: EM131910774

Questions Cloud

Discuss your three favorite forms of relaxation : Discuss your three favorite forms of relaxation and provide a paragraph on each. Be sure, to tell me why each activity is relaxing for you.

What is the operating cycle for net speed : Which of the following statements is true of a project with a positive net present value (NPV)? What is the operating cycle for NetSpeed?

What core principles will you rarely violate : Write down the comprehensive, consistent, and universal principles that guide your behavior under all circumstances.

What impact will the reduction of the number of flights : What impact will the reduction of the number of flights to the Barcena's island likely have on the previous demand forecasts that have been created

Compute the after-tax rate of return for the truck : The combined federal and state income tax rate for BVM is 40%. Compute the after-tax rate of return for the truck.

What will be the flotation-adjusted cost of equity : Assume Brown-Murphies faces a flotation cost of 11 percent on new equity issues. What will be the flotation-adjusted cost of equity?

The difference between the group by and having : Why is it best practice to not use SELECT * when writing SQL code? You may have to Google this answer.

In what ways do you think you have progressed in your group : In what ways do you think you have progressed in your small group (i.e. meetings) communication abilities? What do you want to keep working on?

Review of a website about ADD or ADHD : Review of a website about ADD or ADHD. You will write this review for the general public, so you might target a particular publication, such as a student

User Account

All Pages