Find what will be the effect on cash flows of the sale

Assignment Help Financial Econometrics

Reference no: EM13329051

Suppose you sell a fixed asset for $121,000 when its book value is $141,000. If your company's marginal tax rate is 39 percent, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

Reference no: EM13329051

Questions Cloud

What distance must the spring be compressed : You are asked to design a spring that will give a 1200-kg satellite a speed of 3.50 m/s relative to an orbiting space shuttle. What distance must the spring be compressed

What would be the weight used for equity in the computation : FarCry Industries, a maker of telecommunications equipment, has 3 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 10,000 bonds.

Determine what is diddys cost of equity : Diddy Corp. stock has a beta of 1.3, the current risk-free rate is 5 percent, and the expected return on the market is 14.50 percent. What is Diddy's cost of equity

Explain what is the half life of the reactants : A second order reaction of the type A + B--> P was carried out in a solution that was initially .075 mol dm^-3 in A and .050 mol dm^-3 in B. After 1.0 h the concentration of A had fallen to .020mol dm^-3 a)Calculate the rate constant b)What is the..

Find what will be the effect on cash flows of the sale : Suppose you sell a fixed asset for $121,000 when its book value is $141,000. If your company's marginal tax rate is 39 percent, what will be the effect on cash flows of this sale

Estimate present value of the tax benefits from depreciation : 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.

Walt disney company management : Walt Disney and share your thoughts on the following questions. Please organize your response by the question number.

Cashews make up what percent of the new and improved can : Acme sells cans of mixed nuts. A typical can has 100 nuts. In the past, 5% of the nuts were cashews, but now Acme is advertising that its new and improved can of mixed nuts has 40% more cashews. Cashews make up what percent of the new and improved ca..

What would be oberons before-tax component cost of debt : Oberon, Inc., has a $35 million (face value) 10-year bond issue selling for 94 percent of par that pays an annual coupon of 8.20 percent. What would be Oberon's before-tax component cost of debt

User Account

All Pages