User Account

All Pages

Expected present value of after-tax savings

Assignment Help Finance Basics
Reference no: EM132705685

A company is considering a project that would require the purchase of an asset for $120,000. The asset belongs in a 30% CCA class and is expected to have no salvage value at the end of the 4-year project. The project would require a net working capital investment of $23,000 up-front. The company has a tax rate of 30% and a required return of 13%. The project is expected to generate annual pre-tax cost savings of $48,000. What is the expected present value of after-tax savings for this project?

Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50.

Reference no: EM132705685

Questions Cloud

Explain teh diagnostic tests to diagnosis the disorder : Patient and family education is important in increasing adherence. To provide education to patient and families, you are going to create a poster about.
Present value of net working capital : A company is considering a 3-project that would require a net working capital investment of $22,000 up-front.
What is the weighted average cost of capital : If a company has a capital structure of $5 million common stock with a cost of 17%, $2 million bonds at 4%, What is the Weighted Average Cost of Capital
Information Warfare and Cyberterrorism : Russian denial-of-service attack on the country of Estonia in 2007. Who was the victim of the cyberterrorism or information warfare campaign?
Expected present value of after-tax savings : The project is expected to generate annual pre-tax cost savings of $48,000. What is the expected present value of after-tax savings for this project?
Determine what methods of transmitting data packets : Determine what methods of transmitting data packets should be used and Discuss the type of infrastructure that needs to be in place
Expected present value of after-tax savings for project : The project is expected to generate annual pre-tax cost savings of $45,000. What is the expected present value of after-tax savings for this project?
Identify the pico elements for each question : Identify the PICO elements for each question. Develop a search strategy using at least 3 keywords from the P, I, and O parts of your PICO, 1 synonym.
Comparative analysis : Discuss the benefits of using comparative analysis of governments. Explain why political systems cannot be compared strictly on their structure.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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