What is the after-tax cash flow from the sale

Assignment Help Finance Basics
Reference no: EM131938467

Consider an asset that costs $730,000 and is depreciated straight line to zero over its eight year tax life. The asset is to be used in a five year project; at the end of the project, the asset can be sold for $192,000. If the relevant tax rate is 40 percent, what is the after-tax cash flow from the sale of this assets?

Reference no: EM131938467

Questions Cloud

Which project would you undertake : Assume there are three projects. The IRR of project A is 14%, the IRR of project B is 18%, the IRR of project C is 22%. Given the discount rate of 8%.
Determining the equivalent annual cost of lightbulb : A Kilowatt-hour is 1,000 watts for 1 hour. If you require a 10 percent return and use a light fixture 500 hours per year, what is the equivalent annual cost?
What plan of action will you use : Should you be another "good guy" and ignore the situation hoping that someone else will notice it and take action? Or should you do something?
What is the amount of minimum gain chargeback : What is the amount of minimum gain chargeback if partnership taxable income for the year is $20,000 and the liabilities are reduced by $150,000 to $350,000
What is the after-tax cash flow from the sale : If the relevant tax rate is 40 percent, what is the after-tax cash flow from the sale of this assets?
How doe you ensure that the organizations practices align : What are some recommend practices and protocols for ethical leadership (nonprofit organization) that are compatible with community culture?
How much would you have when you retire : Suppose you worked until you were 60, then how much would you have when you retire (make sure you adjust the formula for monthly compounding)?
How should your human resource department protect : How should your Human Resource Department protect itself from these devastating claims?
Find the highest net profit possible for the speculator : Assume that a speculator purchases a call option on British pounds (with a strike price of $1.50) for $.05 per unit. A pound option represents 31,250 units.

Reviews

Write a Review

Finance Basics Questions & Answers

  Read the article ldquodo we need capm for capital

read the article ldquodo we need capm for capital budgeting?rdquo do you agree or disagree with the authors position?

  Convert its overall position to the one desired

Show how it can use currency and equity swaps to maintain its position in the plain vanilla euro swap and convert its overall position to the one desired.

  An investment is expected to pay a return of 100 per year

an investment is expected to pay a return of 100 per year. the interest rate for the investment is 6. what will the

  What is the company total assets turnover

Gardial & Son has an ROA of 12%, a 5% profit margin, and a return on equity of 2-%. What is the company's total assets turnover? What is the firm's equity multiplier?

  What is the current stock price according to the constant

If you expect a constant growth rate of 4.82 percent, and have a required rate of return of 8.82 percent, what is the current stock price according to the constant growth dividend model?

  Determination of depreciation expense

Under MACRS, an asset which originally expenses $10,000 is being depreciated using a five year normal recovery period. Determine the depreciation expense in year 3?

  What are the portfolio weights for a portfolio that has

determining portfolio weights what are the portfolio weights for a portfolio that has 100 shares of stock a that sell

  Tottenham hotspur plc case

Strategy paper: write a two-page paper double spaced which provides a methodology that could be followed to actually solve the case.  The strategy paper need not be an actual solution to the case -- it may simply explain how one would go about sol..

  Violating an nda may be a breach of contract

Violating an NDA may be a breach of contract, but doesn't this have the impact of getting important information into the system sooner?

  Prepare the amortization schedule

Using Excel, prepare the amortization schedule and then record all required journal entries that would be made by Barker on the following dates (a) December 31, 20123 (b) March 31, 2014; (c) June 30, 2014; (d) September 30, 2014; and (e) December ..

  Is it consistent with utilitarianism

I dont care how rich the very rich are. I care if they became rich in an unethical way, or if they use their riches in a particularly cringer or revolting way.

  What is the standard deviation of returns

A poorly diversified portfolio has a standard deviation of 20%. What can you say about its beta?

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