What are the after tax proceeds from sale

Assignment Help Financial Management

Reference no: EM132031805

1) A new washer costs $13,000. The old one is fully depreciated and can be sold for $4,000. The new washer will last 10 years and save $5,000 per year in expenses. The new washer will be depreciated on a straight line basis to zero. The tax rate is 26% and the required return is 15%. What is the NPV of this project? Answer to 2 decimals places, for example 543.12.

2) Two years ago, your firm bought a new machine for $5,000. The machine was depreciated on a MACRS 3 year schedule. Today, your company will sell the machine for $4,000. The tax rate is 24%. What are the after tax proceeds from the sale? Answer to 2 decimals, for example 105.21.

MACRS 3 Year

Year Amount

1 33.33%

2 44.45%

3 14.81%

4 7.41%

Reference no: EM132031805

Questions Cloud

According to the managerial entrenchment theory : According to the managerial entrenchment theory, managers choose capital structure so as to preserve their control of the firm.

Operates a landscaping business and is self-employed : Nick, who is age 55, operates a landscaping business and is self-employed. what is the most that Nick can contribute to the SEP IRA for himself?

Baily owns and operates ben red truck shop : Baily owns and operates Ben’s Red Truck Shop (BRT), How much self-employment tax does she owe for 2018?

At what price would you expect globo-chem to sell : Its earnings this year will be $3 per share. Investors expect a 12% rate of return on the stock. At what price would you expect Globo-Chem to sell?

What are the after tax proceeds from sale : Today, your company will sell the machine for $4,000. The tax rate is 24%. What are the after tax proceeds from the sale?

Highlighted statement to include any ethical considerations : Critically analyse the highlighted statement to include any ethical considerations. Plus, develop a new policy framework for the company.

What is the npv of the acquisition : The Glass Works has a market value of $336,000. The merger is expected to create $24,000 of synergy. What is the NPV of the acquisition?

Compute the macrs depreciation schedule : Compute the MACRS depreciation schedule and any taxable gain or loss when the truck is sold. What is this taxable gain called?

Explain why convertible security is always callable : Explain why a convertible security is always callable and when can a company call the security?

User Account

All Pages