What is equipment after-tax salvage value

Assignment Help Financial Management
Reference no: EM132052791

Fulton Equipment is now in the final year of a project. The equipment originally cost $550,000 of which 80% has been depreciated. The company can sell the used equipment today for $150,000 and its tax rate is 40%. What is the equipment's after-tax salvage value (net salvage value)?

Reference no: EM132052791

Questions Cloud

Estimate the unit price-variable cost and fixed cost : Describe the product, estimate the unit price, variable cost, fixed cost, and state the resulting profit formula in the form of x – fixed cost.
What is present value of the tax saving under each approach : how much are annual tax savings using each method? What is present value of the tax saving under each approach?
Using the black-scholes-merton formula : Using the Black-Scholes-Merton formula or the Black-Scholes-Merton calculator,
What fraction would you devote to third-in-three : If you were allocating your complete portfolio in any year between Third-In-Three and T-bills, what fraction would you devote to Third-In-Three?
What is equipment after-tax salvage value : What is the equipment's after-tax salvage value (net salvage value)?
Considering the purchase of new piece of machinery : Peak Industries is considering the purchase of a new piece of machinery. What aspect of the uneven cash flow scenario accounts for this difference?
Invest the money in stock : If you invest the money in a stock with a beta of 0.95, what will be the required return on your $5.5 million portfolio?
Compute the discounted payback period of the project : Compute the Discounted Payback Period of the project.
Statements regarding derivatives is true : Which of the following statements regarding Derivatives is true? The bond can be converted into 32 shares of stock. What is the conversion price?

Reviews

Write a Review

Financial Management Questions & Answers

  When applying the capital asset pricing model

when applying the Capital Asset Pricing Model and what are the underlying strengths and weaknesses of this application?

  The constant dividend growth model

The constant dividend growth model:

  The uncertainty involved in international markets

How would hedging help an international business? What are the uncertainty's involved in international markets?

  About to determine your corporations taxable income

You are about to determine your corporation's taxable income. Which of the following selections does not help to reduce the taxable income for the firm?

  Determine true risk tolerance

Jennifer Jones wants to accumulate wealth, but she has told you, her new financial planner, that she is risk averse. Determine Jennifer's true risk tolerance.

  Bond is premium bond making semiannual payments

Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 8.8 percent, a YTM of 6.8 percent, and has 13 years to maturity. Bond Y is a discount bond making semiannual payments. What are the prices of these bonds today? What d..

  When might the constant growth model not be used

When might the constant growth model not be used? Explain characteristics of preferred stock. How stock is valued if the constant growth model cannot be used.

  What is the company addition to retained earnings

What was the company's taxable income and tax liability (taxes paid). What is the company's addition to retained earnings?

  Formulate and solve a linear programming problem

Formulate and solve a linear programming problem/model to determine the number of family thrill seekers and the number of classy cruisers that should be assembled just using graphical or simplex method.

  What is the project payback period if the initial cost

What is the project payback period if the initial cost is $3,200? What is the project payback period if the initial cost is $4,600?

  Create a 4 period moving average forecast

Create a 4-period moving average forecast, an exponential smoothing forecast with alpha=0.2, and a linear trend forecast for your data.

  What is the effective rate on bank loan

What is the effective rate on the bank loan? Should Harper borrow the money to take the discount?

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