Tax purposes-what is the aftertax salvage value of asset

Assignment Help Financial Management

Reference no: EM13945163

An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,080,000 and will be sold for $1,280,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax salvage value of the asset? Refer to Table 8.3. (Enter your answer in dollars, not millions of dollars (e.g., 1,234,567). Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).)

Reference no: EM13945163

Questions Cloud

Give an example of when reclassifying a long term : What are the ethical ramifications of re-classifying investments? Give an example of when reclassifying a long term investment as a short term investment makes financial sense for the company.

How much in total assets did the business acquire : How much in total assets did the business acquire as a result of the two transaction? Identify each asset and show it balance

What conclusions can you draw about this child : Thinking about what you know of human development and its relationship to the process of learning, and memory, what conclusions can you draw about this child's brain functions, development, and learning?

A1, a2, a3 form a partition of the universal set s : Suppoe that A1, A2, A3 form a partition of the universal set S. Let B be an arbitrary set. Assume that we know |B∩A1|=10, |B∩A2|=20,

Tax purposes-what is the aftertax salvage value of asset : An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,080,000 and will be sold for $1,280,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax s..

Rover''s friends provides dog washing services. : Rover's Friends provides dog washing services. For each dog, supplies cost $ 3 and wages are $ 5. To provide this service, a special room and equipment are needed, at a cost of $ 300 per month. Rover's Friends maintains an average of 30 dogs washed e..

Project will produce an operating cash flow : A project will produce an operating cash flow of $7,300 a year for three years. The initial cash outlay for equipment will be $11,600. The net aftertax salvage value of $3,500 will be received at the end of the project. The project requires $800 of n..

Project net present value if the required rate of return : A project is expected to create operating cash flows of $24,500 a year for three years. The initial cost of the fixed assets is $55,000. These assets will be worthless at the end of the project. An additional $4,000 of net working capital will be req..

What is the firms cash conversion cycle : Romano Inc. has the following data. What is the firm's cash conversion cycle?

User Account

All Pages