What is aftertax cash flow from the sale of this asset

Assignment Help Financial Management

Reference no: EM131347324

Consider an asset that costs $246,400 and is depreciated straight-line to zero over its 8-year tax life. The asset is to be used in a 3-year project; at the end of the project, the asset can be sold for $30,800. Required : If the relevant tax rate is 34 percent, what is the aftertax cash flow from the sale of this asset?

$72,688.00

$76,322.40

$460,164.00

$69,053.60

$20,328.00

Reference no: EM131347324

Questions Cloud

How high oil prices could reduce real gdp : In 2003, there was much concern that rising oil prices would contribute to a global recession. Use aggregate demand and supply analysis to explain how high oil prices could reduce real GDP.

Calculate the value of the two accounts at end of one year : Joseph is a friend of yours. He has plenty of money but little financial sense. He received a gift of $12,000 for his recent graduation and is looking for a bank in which to deposit the funds. Calculate the value of the two accounts at the end of one..

Describe the types of resources ea appears to have : Does EA exhibit the critical success factors for the new business context? Explain. Describe the types of resources EA appears to have. Do you think any of these resources might be unique? Explain.

Explain why the curve has this shape : Now draw a long-run aggregate supply curve that intersects a short-run AS curve. What is the rel tionship between short-run AS and long-run AS?

What is aftertax cash flow from the sale of this asset : Consider an asset that costs $246,400 and is depreciated straight-line to zero over its 8-year tax life. The asset is to be used in a 3-year project; at the end of the project, the asset can be sold for $30,800. Required : If the relevant tax rate is..

Payback period-npv and profitability index : The firm requires its projects to recover the initial investment within 3 years. Payback period, NPV, Profitability index, Internal rate of return, Should the firm invest in this project? Why or why not? You must give specific reasons based on all o..

Discuss the financial position of trap adventures inc : What is the largest percentage? What is the smallest percentage? Discuss the financial position of Trap Adventures, Inc using the following ratios: Current ratio and Return on equity.

Create an ungrouped frequency distribution table : You create and analyze frequency distributions of data provided as a Microsoft Excel file. Import the data into SPSS using the techniques described in Module 3, and then run frequency distribution tables, as instructed below, in SPSS. Note: It is ..

Firm has common stock with market price : A firm has common stock with a market price of $100 per share and an expected dividend of $5.61 per share at the end of the coming year. A new issue of stock is expected to be sold for $98, with $2 per share representing the underpricing necessary in..

User Account

All Pages