What is present value of the salvage value of the machine

Reference no: EM133369396

Question: You purchase a machine for $100 in year 0 and plan to terminate your project and sell off the machine for $30 in year 5. The depreciated book value of the machine in year 5 is $0. The corporate tax rate is 35%. The cost of capital is r=5%.. What is the present value (NPV) of the salvage value (after paying taxes) of the machine?

Reference no: EM133369396

Questions Cloud

Concept of race so prevalent in modern society : Why is the concept of race so prevalent in modern society when anthropologists refute its use in virtually all instances?

The Gift in the Animal : What is the thing that Nadasdy, in "The Gift in the Animal," says that anthropologists studying hunting societies have been unable to truly take seriously? Why

How might you handle this conflict between riley and hyeon : How might you handle this conflict between Riley and Hyeon-Ju? How might the team's overall performance be affected if this conflict goes unresolved?

Understand the science related to climate change : Considering these ideas, why might it be necessary for citizens to understand the science related to climate change?

What is present value of the salvage value of the machine : You purchase a machine for $100 in year 0 and plan to terminate your project and sell off the machine for $30 in year 5. The depreciated book value

Achieve the same or similar goal of artwork : What other medium could have been used to achieve the same or similar goal of the artwork?

What is basket weaver weighted average cost of capital : Treasury bill is yielding 3 percent and the return on the market is 12 percent. The corporate tax rate is 34 percent. What is Basket Weaver's weighted average

What type of members are you recruiting and why : What type of members are you recruiting and why? What are the psychological risks associated with group membership? How can these risks be minimized?

How much of the total increase in assets will be supplied : When a firm grows, some liabilities grow spontaneously along with sales. Spontaneous liabilities are a source of capital that the firm will generate internally

User Account

All Pages