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?

User Account

All Pages