What is incremental cash flow from selling machine

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1. Six months from today you plan to borrow $433 million for 6 months at LIBOR. You hedge 100% of your interest rate risk with a euro dollar futures contract priced at 99.4. If settled in arrears, what is your payment if the 6-month LIBOR is 2.5625% in six months?

2. You purchased a machine for $1.05 million three years ago and have been applying? straight-line depreciation to zero for a? seven-year life. Your tax rate is 35%. If you sell the machine today? (after three years of? depreciation) for $764,000?, what is your incremental cash flow from selling the? machine?

Reference no: EM131913282

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