User Account

All Pages

Expected present value of after-tax savings

Assignment Help Finance Basics
Reference no: EM132705526

A company is considering a project that would require the purchase of an asset for $140,000. The asset belongs in a 30% CCA class and is expected to have no salvage value at the end of the 6-year project. The project would require a net working capital investment of $25,000 up-front. The company has a tax rate of 35% and a required return of 15%. The project is expected to generate annual pre-tax cost savings of $46,000. What is the expected present value of after-tax savings for this project?

Reference no: EM132705526

Questions Cloud

What is the pvccats : A company is considering a project that would require the purchase of an asset for $130,000. The asset belongs in a 20% CCA class and is expected to have
How much income does George need to recognize : The cost of the meals to the power company was $470. How much income does George need to recognize from the meals
What amounts should be recorded for accounts for the july : Alpha Company sells goods to customers who use Worldwide Express nonbank, What amounts should be recorded for the accounts for the July 21 collection?
Design hr structure with line description for the positions : Design HR structure with 2 line description for the positions by establishing new business 50- 60 employee and why you belive this structurec will success.
Expected present value of after-tax savings : The project is expected to generate annual pre-tax cost savings of $46,000. What is the expected present value of after-tax savings for this project?
The concept of income tax : The concept of Income Tax was created which was the same year as the creation of the Federal Reserve System.
What is the balance sheet amount for trading securities : On 1/2/20X6, ALPHA acquired 100 shares of CHARLIE Corporation stock. What is the balance sheet amount for trading securities at the end of 20X7?
How much income should Malin recognize : During the year, Malin paid $1,200 toward her family's health insurance premiums, How much income should Malin recognize
Describe the business of berkshire hathaway : What do you think of the investment performance of Berkshire Hathaway? (You can conduct the analysis in the long run and in the short run.)

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the expected yield to maturity

A 20-year U.S. Treasury bond with a par value of $1,000 is currently selling for $1,025 from various securities dealers. The bond carries a 6 percent coupon rate with payments made annually. If purchased today and held to maturity, what is the exp..

  What will paul monthly payments be

Paul is buying a new boat for $11,000. The dealer gives him an add-on loan, charging him an annual interest rate of 9.1%. If he takes a 6-year loan, what will Paul's monthly payments be?

  What is net lending and net borrowing

What is net lending/ net borrowing ? How is it related to financial account? Net lending/ net borrowing is calculated by current plus capital account?

  How many days does it take the firm to pay its suppliers

ABC Company has annual sales of $628,885. The cost of goods sold are $432,208. The firm has an accounts receivable balance of $15,425 and an accounts payable balance of $31,027. How many days does it take the firm to pay its suppliers? Assume 365..

  Determine the WACC based on recent market

Evaluate the options using NPV analysis and clearly identify which of the two alternatives results in a higher valuation for Kidman Resources

  Kübler-ross''s stages of dying

Elisabeth Kübler-Ross proposed five psychological stages of dying: denial and isolation, anger, bargaining, depression, and acceptance. These stages do not occur in a specific order, and the stages often overlap. Dying people often have to rework the..

  What is an example of a feasible swap

Bank 1 can issue five-year CDs at an annual rate of 11 percent fixed or at a variable rate of LIBOR + 2 percent. Bank 2 can issue five-year CDs at an annual.

  Calculate the flash inc non-constant dividends

Flash Inc. was founded 5 years ago. It has been profitable for the last 2 years, but it has needed all of its earnings

  Customary evaluations and interpretations

In cross-cultural interactions, why are your customary evaluations and interpretations more likely to be off base? Explain.

  Explain to dakota the options available

Explain to Dakota the options available and any specific restrictions, if any, that apply to those options.

  Collection of a blood sample

When can a Vacutainer not be used for collection of a blood sample

  Gross margin ,profit margin and earnings per share

financial analysis for Panera Breads INCOME STATEMENT and CASH FLOW for FY 13 but also including old data from Fy 11 and 12. DO NOT INCLUDE BALANCE SHEET as this is a portion of a total assignment. should only be a few pages of text. Income statement..

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd