Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1. Your firm needs a machine which costs $280,000, and requires $49,000 in maintenance for each year of its 7 year life. After 5 years, this machine will be replaced. The machine falls into the MACRS 7-year class life category. Assume a tax rate of 30% and a discount rate of 16%. What is the depreciation tax shield for this project in year 7?
$17,502.80
$25,004
$7,501.20
$4,000.64
2. Your Company is considering a new project that will require $1,070,000 of new equipment at the start of the project. The equipment will have a depreciable life of 9 years and will be depreciated to a book value of $309,500 using straight-line depreciation. The cost of capital is 12%, and the firm's tax rate is 40%. Estimate the present value of the tax benefits from depreciation (closest to).
$84,500
$50,700
$33,800
$180,095
3. Your firm needs a machine which costs $160,000, and requires $31,000 in maintenance for each year of its 3 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 35% and a discount rate of 15%. What is the depreciation tax shield for this project in year 3?
$15,402
$3,554.40
$23,696
$8,293.60
John has some extra cash today in the amount of $240 and places the money in the bank for 9 years. John expects to have extra cash one-year from today in the amount of $590, and will leave this second amount in the bank for 8 years. All savings earn ..
what is the present value of the expected dividends for Scotts Dairy? what is the expected return?
If firm's net capital spending for 2009 was $710,000 and firm reduced its net working capital investment by $195,000, firm's 2009 operating cash flow or ocf?
If the value of the current stock is $35, what would be the expected rate of return?
a. suppose the second last 12.7 million and last 76.7 million mortgage loans in loan group 1 in the nationwide
Find the present value of an annuity due that pays $2000 at the beginning of each quarter for the next 5 years.
A stock is expected to pay dividends of $1.00, $0.75 and $2.00 for the next 3 years, respectively. After that time, dividends are expected to grow at a constant rate of 6% indefinitely. The required return on the stock is 10% during the non-constant ..
John is trying three different methods to price a European put option that will expire in three months. The underlying stock is currently priced at $32 and doesn’t pay any dividend. The put strike is $30, the risk-free rate is 10% per annum and the v..
Your firm is considering an overseas expansion. Below is the information that you have been given regarding the project: Initial Equipment Cost: $100m. Life of System: 5 years. Depreciation method: Straight line Depreciation. What will be the cash fl..
Many accounting and accounting-related professionals are skilled in financial analysis, but most are not skilled in manufacturing. This is especially the case for process manufacturing environments (for example, a bottling plant or chemical factory)...
At an interest rate of 10% per year, what is the present worth of the expenditures?
The risk-free rate of interest is 7% per annum and the index provides a dividend yield of 4% per annum.- Calculate the value of a three-month European put with an exercise price of 700.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd