What is equipment after-tax salvage value

Assignment Help Financial Management
Reference no: EM131540754

After tax salvage value

Karsted Air Services is now in the final year of a project. The equipment originally cost $26 million, of which 80% has been depreciated. Karsted can sell the used equipment today for $6.5 million, and its tax rate is 35%. What is the equipment's after-tax salvage value? Round your answer to the nearest dollar. Write out your answer completely. For example, 13 million should be entered as 13,000,000.

Reference no: EM131540754

Questions Cloud

Describes project that has low degree of operating leverage : Which one of the following characteristics best describes a project that has a low degree of operating leverage?
Arbitrage opportunity is available investment banking firm : What arbitrage opportunity is available for an investment banking firm? What is the profit on the activity?
Estimate present value of the tax benefits from depreciation : Estimate the present value of the tax benefits from depreciation (closest to).
Find imputed interest income : Find the imputed interest income in the first, second, and last year of the bond's life.
What is equipment after-tax salvage value : Karsted can sell the used equipment today for $6.5 million, and its tax rate is 35%. What is the equipment's after-tax salvage value?
What rate must it be compounded annually : If you have only $50,000 at what rate must it be compounded annually for it to grow to $240,000 in 16 years?
Payer type saw enrollees have biggest spending increase : Which payer type saw enrollees have the biggest spending increase in 2015?
Debt acquisition fees-permium on debt and discount on debt : Determine Cost of Capital where or how do you find the Amount of Debt, Debt Acquisition Fees, Permium on Debt and Discount on Debt numbers?
Examples of vendor software and systems : Examples of vendor software and systems that will need revisions due to the change from ICD-9 to ICD-10 include how many of the following:

Reviews

Write a Review

Financial Management Questions & Answers

  What is the marginal cost of the fifth arrest

The Alliance pays the Blue Hands men to seize the crew of Serenity. They pay $62,000 to have five crew members seized or killed. Each arrest costs twice as much as the previous one. What is the marginal cost of the fifth arrest?

  What is share after tax salvage value

Lion's share Inc. just bought a 2.5 million machine that will be depreciated over its 15 year life using straight line depreciation. The marginal tax rate is 35%. What is Lion's share after tax salvage value if the machine is sold in year 7 for 1.75 ..

  You receive all of your financing in the form of equity

Assume that the CAPM holds and that you receive all of your financing in the form of equity.

  The interest is compounded quarterly

Your bank pays a 5% nominal rate of interest. The interest is compounded quarterly.

  How has foreign currency translation changed in united state

How has foreign currency translation changed in the United States? What factors have contributed to these changes?

  What is the dollar value of inventory held by the firm

Camp Manufacturing turns over its inventory five times each year, has an average payment period of 35 days , and has an average collection period of 60 days. The firm has annual sales of $3.5 million and cost of goods sold of $2.4 million. Calculate ..

  Cash flow impact and the projects net present value

COMM Company is considering an investment in a new inventory control system. The system will require a substantial up-front investment but is expected to provide annual cash cost savings for the next 6 years. Prepare an exhibit that displays the outc..

  The policy holder with the highest-risk tolerance

Which of the following is the policy holder with the highest-risk tolerance?

  Calculate the firms sales and ROA

Grossman Enterprises has an equity multiplier of 3.08 times, total assets of $1,596,000, an ROE of 15.10 percent, and a total asset turnover ratio of 3.15 times. Calculate the firm’s sales and ROA.

  Same exercise price and expiration date as the call option

The current price of a stock is $33, and the annual risk-free rate is 7%. A call option with a strike price of $32 and 1 year until expiration has a current value of $7.20. What is the value of a put option written on the stock with the same exercise..

  Calculate the discount period for the bank

Calculate the discount period for the bank to wait to receive its money: date of note April 12 length of note 45 days date note discounted May 2 what is the discount period?

  The bond is treated as an original-issue discount bond

A newly issued 10-year maturity, 4% coupon bond making annual coupon payments is sold to the public at a price of $860. The bond will not be sold at the end of the year. The bond is treated as an original-issue discount bond. Calculate the constant y..

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