Net cash flow from the salvage value

Assignment Help Financial Management

Reference no: EM131611421

Denny’s Corp. purchased some fixed assets two years ago for $39,000. The assets are classified as 5-year property for MACRS. The firm is considering selling these assets now for a market price of $19,000. Assume a tax rate of 34%, the net cash flow from the salvage value is $_____________ [Round your answers to two decimals; do not use comma to separate the thousands]

MACRS 5-year property

Year Rate

1 20.00%

2 32.00%

3 19.20%

4 11.52%

5 11.52%

6 5.76%

Reference no: EM131611421

Questions Cloud

What is the amount of cash received : On January 24, payment is received from Martinez for the balance due. What is the amount of cash received

Repayment will take the form of equal monthly payments : Suppose you have taken out $25,000 in student loans. The repayment will take the form of equal monthly payments for the next 10 years.

Why are african american boys more likely to be diagnosed : Why are African American boys more likely to be diagnosed with ADD/ADHD and other brain disorders early on in their education?

Can sue and tessa still gain from trade : Suppose that Tessa buys a new machine that enables her to make 20 jackets an hour. (She can still make only 80 caps per hour.)

Net cash flow from the salvage value : Denny’s Corp. purchased some fixed assets two years ago for $39,000. Assume a tax rate of 34%, the net cash flow from the salvage value is

Consider learning organizations : Consider the different organizations and businesses that you have been associated with and reflect on the organizational culture of each.

Explain how handy ltd should measure the fair value : Using the above information, explain how Handy Ltd should measure the fair value of the asset it holds and determine the asset's fair value

What are the social institutions that cuba might lack : For 50 years, Cuba has had a centrally planned economy in which the government makes the big decisions on how resources will be allocated.

Current project management issues : MN601 Who do you think should pay for the changes - What could have been done to make sure that the project scope was correct?

User Account

All Pages