Estimate the present value of tax benefits from depreciation

Reference no: EM13269667

Your company is considering a new project that will require $912,000 of new equipment at the start of the project. The equipment will have a depreciable life of 10 years and will be depreciated to a book value of $142,000 using straight-line depreciation. The cost of capital is 13 percent, and the firm's tax rate is 34 percent.

Estimate the present value of the tax benefits from depreciation. (Round your answer to 2 decimal places.)

Reference no: EM13269667

Questions Cloud

Calculate the project expected npv : Calculate the project's expected NPV, standard deviation, and coefficient of variation. Round your answers to two decimal places. Enter your answers for the project's expected NPV and standard deviation in millions. For example, an answer of $13,0..

Explain a saturated aqueous solution of lead iodate : A saturated aqueous solution of lead(II) iodate, Pb(IO3)2, contains 3.1 x 10-5 M Pb+2 at 25°C. Assuming an ideal solution, and assuming no reaction of the ions with water, calculate the Ksp of lead(II) iodate at that temperature.

Find the speed of the block immediately after bullet exits : A 2.0kg block of wood sits on a table. A 3.0 g bullet, fired horizontally at a speed of 360m/s, find the speed of the block immediately after the bullet exits

Explain following data and select the best buffer system : Consider the following data and select the best buffer system below to make a buffer with a pH of 10.00.

Estimate the present value of tax benefits from depreciation : Your company is considering a new project that will require $912,000 of new equipment at the start of the project. The equipment will have a depreciable life of 10 years and will be depreciated to a book value of $142,000 using straight-line depre..

Describe and discuss the regulatory framework changes : describe and discuss the regulatory framework changes that took place during the last couple of years in the euro area banking and financial markets.

How do mnc help themselves : How do MNC help themselves more than they help develop the host country and how are the only increasing the gap in poverty rather than reducing poverty. How are they only increasing their power and making it harder for developing countries to catc..

Explain the titration of an hcn solution with a naoh titrant : Consider the pH range for the following indicators and select the most appropriate indicator for the titration of an HCN solution with a NaOH titrant.

Prepare a bank reconcilation : Prepare a bank reconcilation using this and find the bank balance and checkbook balance.

User Account

All Pages