What is after-tax cash flow from the sale

Assignment Help Financial Management

Reference no: EM131937288

A piece of newly purchased industrial equipment costs $8,200,000, has a salvage value of $350,000 and is classified as a seven-year property under MACRS. Calculate the annual depreciation allowances and the end-of-year book values for this equipment. If the equipment is sold for 30% of the initial cost in year 5, what is the after-tax cash flow from the sale if the tax rate is 35%?.

Reference no: EM131937288

Questions Cloud

What is the value of levered equity and levered firm value : The unlevered equity requires 10% annual return. What’s the levered firm value? What’s the value of levered equity?

What is the required return for the levered equity : Discuss Modigliani and Miller's Propositions I and II in a perfect world without taxes nor distress costs. what’s the required return for the levered equity?

Cash flow to exist and achieve sustainability : All operating companies need cash flow to exist and achieve sustainability.

Compared to three companies in industry and will bench mark : Compared to 3 companies in the industry and will bench mark its value off the AVERAGE of these companies.

What is after-tax cash flow from the sale : What is the after-tax cash flow from the sale if the tax rate is 35%?.

Investments would not be hedge for corn farmer : Which one of the following investments would NOT be a hedge for a corn farmer ?

Calculate npv and irr of the project : Calculate the NPV and IRR of the project and make a decision. If expected life of existing machine decreased what effect does this have on the cash flow,

What is book value of equipment at the end of three years : Complimentary Project. what is the book value of the equipment at the end of three years ?

What is the net present value of project : Windflower Farm is considering an investment in a new project, What is the net present value of the project?

User Account

All Pages