User Account

All Pages

What is after-tax salvage value

Assignment Help Financial Management
Reference no: EM131527349

Your firm needs a computerized machine tool lathe which costs $40, 000 and requires $11, 000 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 39 percent and a discount rate of 13 percent.

If the lathe can be sold for $4, 000 at the end of year 3, what is the after-tax salvage value? (Round your answer to 2 decimal places.) Salvage value after tax $ _________

Reference no: EM131527349

Questions Cloud

How is the adjustment recorded : The estimated amount of depreciation on equipment for the current year is $5,000.
Security strategies of defense in depth : In this paper, you will define the security strategies of Defense in Depth and Layered Security along with comparing and contrasting the strategies.
Prepare a statement of cash receipts and disbursements : The local minor league baseball team, The Hampton Hounds, began their season in late April, with five home dates (and no road games) in April.
Suggest three new strategies that government can implement : Suggest three new strategies that you believe the government can implement to eliminate or mitigate insider trading. Provide a rationale to support suggestion.
What is after-tax salvage value : what is the after-tax salvage value?
Public on portable fire extinguishers : You have been assigned by the company officer to present a short class to the public on portable fire extinguishers and it is to be no more than 20 minutes.
Recognize the cost of the warranty repairs as an expense : On December 30, 2006, you buy a Ford Expedition. It comes with a three-year, 36,000-mile warranty. On January 18, 2007, you return the Expedition to the dealer.
Compare and contrast about these two articles : Compare and contrast about those two articles : On the Importance of Drawing and Why drawing needs to be a curriculum essential.
Capital structure includes bonds and preferred stock : MNO's capital structure includes bonds, preferred stock, and common stock. what is MNO's weighted average cost of capital?

Reviews

Write a Review

Financial Management Questions & Answers

  Compute taxable equivalent yield and yield to maturity

Compute the yield to maturity. Compute the taxable equivalent yield.

  The profitability index decision rule

The Matterhorn Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (I) Cash Flow (II) 0 –$89,000 –$57,000 1 38,900 11,100 2 49,000 36,500 3 29,000 30,500. If the required return is 12 percent, ..

  Use the appropriate divisional discount rate

Based strictly on the calculations, which proposals should be accepted or rejected. Use the appropriate divisional discount rate. The net present value provides the answer directly while the internal rate of return must be compared to the discount ra..

  What is the geometric average return

Ten annual returns are listed in the following table: What is the geometric average return over the 10-year period? If you invested $100 at the beginning, how much would you have in the end?

  What is the accounting break-even level for the project

You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information: Sales price per abalone = $34.60 Variable costs per abalone = $5.70 Fixed costs per year = $371,000 Depreciation per year..

  What is the capitalized cost of expenditures

What is the capitalized cost of expenditures of $3,000,000 now, $50,000 in months 1 through 12,

  What is expected rate of return

Walter utilities is a dividend-paying company and is expected to pay an annual divident of $2.65 at the end of the year. what is the expected rate of return?

  Example of source of systematic risk

Which of the following is not an example of a source of systematic risk? The slope of the security market line is

  The most important recipient of fdi in recent years

How would you explain the fact that China emerged as one of the most important recipient of FDI in recent years?

  Calculate roe using the dupont identity

Bethesda Mining Company reports the following balance sheet information for 2015 and 2016.- Calculate ROE using the DuPont identity.

  Calculate trade and cash discounts-interest-interest rates

A business professional needs to easily and accurately calculate trade and cash discounts, interest, and interest rates. The list price for a radio is 22% higher than its net price. If the net price is $29.00, what is the list price? What is the amou..

  Exceed the required return on the less risky stock

Stock R has a beta of 1, Stock S has a beta of 0.65, the expected rate of return on an average stock is 13%, and the risk-free rate of return is 5%. By how much does the required return on the riskier stock exceed the required return on the less risk..

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