What is the after tax cash flow from the sale of asset

Assignment Help Finance Basics
Reference no: EM132507515

Consider an asset that costs $810,000 and is depreciated straight line to zero over its nine 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 $185,000. If the relevant tax rate is 30 percent, what is the after tax cash flow from the sale of this asset?

Reference no: EM132507515

Questions Cloud

Calculate the company predetermined overhead rate : Assume that Rector Company uses direct labor hours as its manufacturing overhead application base. Calculate the company's predetermined overhead rate.
Value change as the underlying stock price changes : If the portfolio of options and stock is made delta neutral will the value change as the underlying stock price changes? Justify your answer.
Calculate the duration of a zero-coupon bond : Calculate the duration of a zero-coupon bond with five years to maturity, face value of $1000, and effective annual yield of 12.1604%.
Discuss the appropriateness of the manufacturing overhead : Discuss the appropriateness of the manufacturing overhead application base used the Barlowe Manufacturing produces cell phone covers.
What is the after tax cash flow from the sale of asset : Consider an asset that costs $810,000 and is depreciated straight line to zero over its nine year tax life. The asset is to be used in a five year project
What differences between full costs and differential costs : Which three options are the differences between full costs and differential costs? Nature of cost, Source of data, Historical cost.
Zero coupon bond price : Calculate the price of a zero coupon bond that matures in 8 years if the market interest rate is 10 percent. (Round your answer to 2 decimal places.)
What is the cost of preferred stock for the firm : The next 4 questions are related to Saunders Company that has the following financing outstanding.
How implementing a strong credit and collections process fix : How would implementing a strong credit and collections process fix the low ratio and help to increase the company's profitability?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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