Use sl depreciation-what is the after-tax irr

Assignment Help Financial Management
Reference no: EM131072444

A new municipal truck can be purchased for $90,000. Its expected useful life is six years, at which time the MV and BV will be zero. BTCF will be approximately $28,000 per year over the six-year useful life of the truck. Use SL depreciation, an effective income tax rate of 40%. What is the after-tax IRR

Reference no: EM131072444

Questions Cloud

Verify that the relationship between the ap and mp curves : Verify that the relationship between the AP and MP curves
Funds acquired by the firm through retaining earnings : Funds acquired by the firm through retaining earnings have no cost because there are no dividend or interest payments associated with them, and no flotation costs are required to raise them, but capital raised by selling new stock or bonds does have ..
What are possible ways to increase its stability in future : Discuss the causes of its instability from both physical and human geographic perspectives. In a few paragraphs and in your opinion, what are the possible ways to increase its stability in the future?
Considering financing project with equity and debt : Zipp Corp. is considering a project that will require $700,000 in assets. The project will be finances with 100%. The company faces a tax rate of 40%. Ziff Corp. is also considering financing the project with 50% equity and 50% debt. The interest rat..
Use sl depreciation-what is the after-tax irr : A new municipal truck can be purchased for $90,000. Its expected useful life is six years, at which time the MV and BV will be zero. BTCF will be approximately $28,000 per year over the six-year useful life of the truck. Use SL depreciation, an effec..
Evaluate the integrals using integrals table : Use the Table of Integrals to evaluate the following integrals. 0∫1 x4e2x dx and ∫sec2(3t)tan2(3t)/√(25-tan2(3t))dt
Compare its position with the curve in that question : Suppose now that the cost of capital in the previous question rises to $3 per unit. Graph the new long-run average cost curve, and compare its position with the curve in that question.
Determine the value of the levered firm : An unlevered firm has a value of $700 million. An otherwise identical but levered firm has $80 million in debt at a 5% interest rate. Its cost of debt is 5% and its unlevered cost of equity is 11%. After Year 1, free cash flows and tax savings are ex..
Coupon bond with eight years left to maturity : A 7 percent coupon bond with 8 years left to maturity is priced to offer a 7.75 percent yield to maturity. You believe that in one year the yield to maturity will be 7.4 percent. What is the change in price the bond will experience in Dollars?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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