Net salvage value-allen air lines

Assignment Help Finance Basics
Reference no: EM132544440

Net Salvage Value

Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $15 million, of which 70% has been depreciated. The used equipment can be sold today for $6 million, and its tax rate is 25%. What is the equipment's after-tax net salvage value? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.

Reference no: EM132544440

Questions Cloud

What is the year 1 cash flow : Your first task is to estimate the Year 1 cash flow for a project with the following data. What is the Year 1 cash flow?
What is the formula for calculating debt ratio : Do common stock, paid in surplus and retained earnings equity's ie do they come under equity in the balance sheet. What is formula for calculating debt ratio
Methods of operating exposure management : What methods of operating exposure management can you recommend as better suited for Firm A and for Firm B?
Determine the weight of debt and ordinary equity : Determine the weight of debt, ordinary equity, and preference equity to be used in the calculation of the after tax WACC. Determine the after-tax cost of debt.
Net salvage value-allen air lines : Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $15 million, of which 70% has been depreciated.
Calculate npv for both and identify which one is better why : Calculate NPV for both and identify which one is better, Why? Candyland Private Limited has an approach of investing their capital in different business
Prepare profit and loss appropriation account : Mickey and Donald were partners in a firm sharing profits in the ratio of 1: 2. Prepare profit and loss appropriation account
What were lory net new stock issues in that year : The company borrowed an additional 25% of its total needs in the long-term debt markets in 2014. What were Lory's net new stock issues in that year?
Net present value of a project : Which of the following amounts is closest to the net present value of a project that contributes $10,000 at the end of the first year and $5,000 at the end

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!

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