What is aftertax cash flow from the sale of this asset

Assignment Help Financial Management

Reference no: EM131551519

Consider an asset that costs $8,446 and is depreciated straight-line to zero over its nine-year tax life. The asset is to be used in a 7-year project; at the end of the project, the asset can be sold for $1,343. If the relevant tax rate is 27 percent, what is the aftertax cash flow from the sale of this asset?

Reference no: EM131551519

Questions Cloud

What makes stock investment different from gambling : Stock investment is sometimes considered gambling. As a Christian University, what makes stock investment different from gambling.

Why firms should operate at conservative debt levels : That is one important reason why firms should operate at conservative debt levels.

Considering the sale of new sound board : Meld Music Company is considering the sale of a new sound board used in recording studios. what is the annual OCF for the project?

Department of large private hospital in metropolitan area : You are the manager of the emergency department of a large private hospital in a metropolitan area served by several hospitals,

What is aftertax cash flow from the sale of this asset : If the relevant tax rate is 27 percent, what is the aftertax cash flow from the sale of this asset?

Compute cash-flows in dollars under each scenario : ticky prices at home (same at DK20/unit but increase in export prices by 33% to DK26.67/unit. Compute the cash-flows in dollars under each scenario?

Retire with million dollars in savings account : Suppose your personal financial goal is to retire with a million dollars in your savings account.

Blocked funds are cash flows that : Blocked funds are cash flows that

Incremental cash flows-result of replacing the old machine : What incremental cash flows will occur at the end of years 0 through 6 as a result of replacing the old machine?

User Account

All Pages