User Account

All Pages

Salvage value and working capital investment recovery

Assignment Help Finance Basics
Reference no: EM132375717

If we have a salvage value of a machine and also the recovery of the initial working capital investment. For example. Salvage value is 5000 after 4 years, working capital investment is 100000 and it recovers in four years. Initially, Equipment cost is 100000, discount rate is 10% and tax rate is 30%. Cash flows four fours years are same at 100000. While calculating Net present Value, what will be the cash flow for year 4?

Do we need to add salvage value and working capital investment recovery to calculate cash flow of year 4?

Is there any relation of tax rate?

Reference no: EM132375717

Questions Cloud

What is walt henderson attitude toward work : What is Walt Henderson's attitude toward work? What are the main components of Walt Henderson's attitude toward work?
Competitive advantage in changing market : How can organizational restructuring enable specific types of businesses to attain competitive advantage in a changing market?
Topic - Community Outreach : Topic: Community Outreach. Public Health Program: Diabetes. Indicate which social media format would be most effective for reaching the target audience
Examine the ethical concerns related to population health : Examine the ethical concerns related to population health. Choose a major ethical issue in global health and provide an analysis of the issue
Salvage value and working capital investment recovery : Do we need to add salvage value and working capital investment recovery to calculate cash flow of year 4?
What are the proceeds bank discount note : What are the proceeds of a P5,500 bank discount note that is payable at the end of 6 months, but discounted after 5 months, at a 15% discount interest rate?
How much will he receive if the discount rate : If Mike decides to sell the note 5 months after the origin date, how much will he receive if the discount rate is 13.5%?
Greater premium to its present value : Which of the bonds trades at a greater premium to its present value? Show your work and explain how you arrived at your answer.
Financial planning process in details : Identify the steps in the financial planning process in details.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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