Consider asset with the cost basis

Assignment Help Operation Management

Reference no: EM132150945

Consider an asset with the cost basis of $500,000, useful life of 5 years and salvage value of 10,000 at the end of its useful life. This asset generates yearly revenue of $275,000 and its operating cost is $55,000 per year. Average inflation rate is estimated to be 4% over the next 5 years.

Calculate tax saving in year 2 due to depreciation; if the double declining method is used for depreciation (tax rate is 30%).

(Report your answer in dollar amounts without any extra character. Answers such as 2Million; 2M; 2,000,000 or $2000000 are not acceptable)

Reference no: EM132150945

Questions Cloud

Impact on effective international public relations : Discuss the factors that influence or impact on effective international public relations.

How an individual can use effective communication techniques : Discuss how an individual can use effective communication techniques to overcome workplace challenges, encourage collaboration across groups.

How these roles incorporate concepts into practice : Compare your future role with one of the following: nurse educator; nurse leader; family nurse practitioner; acute care nurse practitioner

How the concepts of management differ from each other : Describe how the concepts of management differ from each other. In what areas they overlap? Explain how the goals of management and leadership may sometimes.

Consider asset with the cost basis : Consider an asset with the cost basis of $500,000, useful life of 5 years and salvage value of 10,000 at the end of its useful life.

What will the employees want to know : Create a message to the employees, paying careful attention to the organization and presentation method.

Design an algorithm that outputs the smallest number : Given a string s of length n, design an algorithm that outputs the smallest number k such that s = w1w2 . . . wk where each wi is a palindrome.

When mitigating and minimizing high priority risk : Given the importance of risk management, what type of decisions should a small business manager consider when mitigating and/or minimizing a high priority risk?

What benefits and risks do bonds present versus other forms : Research your organization and assess whether or not the organization has outstanding bonds payable or has invested in bonds from another organization.

User Account

All Pages