Reference no: EM13925172
1- Consider the purchase of a $10,000 capper, a three year asset, in year zero and its sale in year four for $2,000. Show in the table below, the pre-tax cash flow, depreciation, tax savings from depreciation, gains tax, and after tax cash flow with a tax rate of 20%
2- Consider a $10,000 at 5% per year that you take out in year zero. The loan has three annual payments in years one through three.
In the table below show, the payments, the interest expense, principal payments, balance remaining, tax savings, and after tax cash flow.
Assume a tax rate of 50%.
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Ordinary annuities are common with leases
: Ordinary annuities are common with leases and premiums paid to insurance companies because these cash flows usually occur at the beginning of the period. An IRR of 14% is better than an IRR or 12% (all other variables the same).
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The conformation of a protein molecule can be changed
: The conformation of a protein molecule can be changed without breaking covalent bonds?
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Measure to the long term investor than yield to maturity
: The current yield is a better measure to the long term investor than the yield to maturity. The major role played by earnings announcements in the valuation of a business (or project) is that earnings announcements are used to revise or refine your f..
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Custom metal works products
: Custom Metal Works Products uses a Job-order costing system. Overhead costs applied to jobs on the basis of machine hours, at the beginning of the year, management estimated that 85,000 machine-hours would be required for the period's estimated level..
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Pre-tax cash flow-depreciation-tax savings from depreciation
: Consider the purchase of a $10,000 capper, a three year asset, in year zero and its sale in year four for $2,000. Show in the table below, the pre-tax cash flow, depreciation, tax savings from depreciation, gains tax, and after tax cash flow with a t..
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The oxygenated and deoxygenated states of hemoglobin
: Explain two differences between the oxygenated and deoxygenated states of hemoglobin.
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What is the total value of icarus
: Icarus Airlines is proposing to go public, and you have been given the task of estimating the value of its equity. Management plans to maintain debt at 27% of the company’s present value, and you believe that at this capital structure the company’s d..
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Difference between the yield to maturity and yield to call
: The difference between the yield to maturity and the yield to call is that yield to maturity is the presumed yield an investor will earn if they hold a bond until it is called. Yield to call is the presumed yield an investor will earn if they buy the..
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Project requires an initial investment in net working
: Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.44 million. The fixed asset will be depreciated straight-line over its three-year tax life, and the fixed asset will have a marke..
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