How much value does depreciation add to the firm

Assignment Help Financial Management
Reference no: EM132024435

Suppose a piece of equipment has a purchase price of $123,456 and can be straight-line depreciated over 5 years. If the tax rate is 25% and the discount rate is 9.5%, how much value does depreciation add to the firm? Calculate your answer to the nearest penny. Please show work.

Reference no: EM132024435

Questions Cloud

Organizational chart from a nursing healthcare facility : Compare and contrast the organizational chart from a nursing healthcare facility. Consider different structure of organizational structure and communication
Calculate the payback period and irr for this project : Calculate the payback period for this project. Calculate the IRR for this project. Calculate the NPV for this project.
Occupational health-safety policies and procedures : Describe the process an organisation must complete to review and update Occupational Health & Safety policies and procedures.
Organizational development in contemporary organizations : What is the role of organizational development in contemporary organizations?
How much value does depreciation add to the firm : If the tax rate is 25% and the discount rate is 9.5%, how much value does depreciation add to the firm?
Upgrade some of your firm equipment : You are deciding whether or not to upgrade some of your firm's equipment.
What are the differences and similarities of icd-9 and 10 : What are the differences and similarities of ICD-9 and 10? How would the management ensure that medical billing errors are limited?
Environment promoting patient-centered care : The impact control systems have on staff morale and patient satisfaction in an environment promoting patient-centered care?
Budgeting decisions differ from short-term operating : How does the evaluation of these types of capital budgeting decisions differ from short-term operating decisions.

Reviews

Write a Review

Financial Management Questions & Answers

  Cost of preferred stock with flotation costs

Cost of Preferred Stock with Flotation Costs Burnwood Tech plans to issue some $60 par preferred stock with a 8% dividend. A similar stock is selling on the market for $70. Burnwood must pay flotation costs of 5% of the issue price. What is the cost ..

  Firms investments in different countries

One of the diversification principles requires that a firm's investments in different countries be:

  About the retirement account

Starting today, George is going to contribute $300 on the first of each month to his retirement account. His employer will contribute an additional 50% of the amount George contributes. If both George and his employer continue to do this and he can e..

  What is the current yield or cost of the preferred stock

Wallace Container Company issued $100 per value preferred stock 10 years ago. The stock provided a 9 percent yield at the time of issue. The preferred stock is now selling for $68. What is the current yield or cost of the preferred stock?

  What is the present value of your winnings

You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 25 years and the payments will increase by 3.8 percent per year. If the appropriate discount rate is 7.8 percent, what is the present value of your w..

  Discuss the gain or loss regarding options trader

Discuss the gain or loss regarding the options trader.

  Dollars in investment account and retirement account

Tim wants to have 257,897 dollars in his investment account in 7 years from today. He expects to earn a return of 9.57 percent per year in that account. Tim plans to make regular, equal savings contributions of X per year to his account for 7 years, ..

  What is the conversion price

A bond has a face value of $10,000 and a conversion ratio of 560. The stock is currently trading at $16.30. What is the conversion price?

  What was the new deposit amount for last seven years

What was the new deposit amount for the last 7 years?

  What annual lease payments will each leasing company require

The Jacobs Company desires to lease a numerically controlled milling machine costing $200,000.

  What is the minimum variance hedge ratio

What is the minimum variance hedge ratio? What is the optimal number of futures contracts when issues associated with daily settlement were not considered?

  Present value of the barn at the time of the fire

A farmer had a barn that was burned in a fire and had been built two years prior to the fire. the useful life of the barn was 35 years, cost was $35,000, and salvage value is $0. if the insurance company is going to pay for the present value of the b..

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!

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