What is aftertax cash flow from sale of this asset

Assignment Help Financial Management
Reference no: EM131348558

Consider an asset that costs $688,000 and is depreciated straight-line to zero over its eight-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $181,000. If the relevant tax rate is 35 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations.)

Please show some work to back up your solution.

Reference no: EM131348558

Questions Cloud

Determine the pressure and temperature of the extract steam : Determine the pressure and temperature of the extract steam as it leaves the regenerator.- The Rankine cycle thermal efficiency of this system.
Data functions to india india aggregate supply : In the short run when US firms moved thrit IT and data functions to India India's aggregate supply?
Determine blade tip velocity of delavals first steam turbine : Determine the blade tip velocity of DeLaval's first steam turbine. It had a rotor diameter of 3.00 inches and ran at 40.0 × 103 rpm.
Describe the four basic types of market structures : Although there are many different examples of economies in the world, all of them demonstrate one or more of the four basic types of market structure. For this assignment, in your own words,
What is aftertax cash flow from sale of this asset : Consider an asset that costs $688,000 and is depreciated straight-line to zero over its eight-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $181,000. If the relevant tax rate is 35..
Determine the isentropic rankine cycle thermal efficiency : Determine the isentropic Rankine cycle thermal efficiency.- The isentropic Rankine cycle thermal efficiency that would occur if the steam were not reheated.
What is the net present value of refinancing : Suppose that five years ago you borrowed $500,000 using a 30-year fixed-rate mortgage with an annual interest rate of 8% with monthly payments and compounding. What is the net present value of refinancing if you make all of the scheduled payments on ..
Production of chocolate and coffee : Suppose the north and south are trading cities and have the following production of chocolate and coffee: North output per hour is 2 chocolate and 8 coffee.
Determine the thermal efficiency and the net power per unit : Steam enters the high-pressure turbine of a Rankine cycle power plant at 1200. psia and 700.°F and exits as a saturated vapor.- Determine the thermal efficiency and the net power per unit mass flow rate of steam for this plant.

Reviews

Write a Review

Financial Management Questions & Answers

  When valuing stock with the dividend discount model

When valuing stock with the dividend discount model, the present value of future dividends will:

  Calculator inputs to receive full credit

Your boss has just given you a $5,000 bonus for the superb work you have been doing. You want to save some of that money for a trip to Bora Bora that you are hoping to take in 4 years. You must show your calculator inputs to receive full credit (Ex: ..

  Calculate the companys debt-to-equity ratio

A brew Company has total assets of $478,000,000 and a debt ratio of 0.25. Calculate the company’s debt-to-equity ratio.

  Why do interest rates vary among countries

Why do interest rates vary among countries? Why are interest rates normally similar for those European countries that use the euro as their currency?

  Estimate the amount of polyethylene and nylon film

Estimate the amount of polyethylene and nylon film needed to ensure daily production in the next week by using historical data related to the last 30 days.

  Alternative definitions were presented for new product

Several alternative definitions were presented for a new product. How would a company’s marketing strategy by affected if it used (a) the legal definition, or (b) a behavioral definition?

  What is your required rate of return per annum

What is your required rate of return per annum?- If the market requires an annual return of 12% for this stock, what is the growth rate of its dividend?

  Calculate the payment net of discount

A store offers two payment plans. Under the installment plan, you pay 12.5% down and 12.5% of the purchase price in each of the next 7 years. If you pay the entire bill immediately, you can take a 15% discount from the purchase price. Calculate the p..

  How much did cass receive as a dividend payment

Cass purchased 100 shares of Polar Tek stock on Monday, September 3. Polar Tek paid its quarterly dividend of $.80 a share on Friday, September 28. The record date was Wednesday, September 5. How much did Cass receive as a dividend payment on Septemb..

  What is the net income and taxable income

Information for Case Books, Inc: What is the taxable income? What is the net income? What is the EPS (earnings per share) figure? What is the dividends per share figure?

  Calculation and interpretation of corporate cost of capital

How is a business’s cost of debt estimated? Its cost of equality? Explain the calculation and interpretation of the corporate cost of capital.

  What total amount of dividends should lenberg pay

If Lenberg has $12 million of investment projects having expected returns greater than 14 percent, what total amount of dividends should Lenberg pay?

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