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

Assignment Help Financial Management
Reference no: EM131957115

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 income tax rate is 40 percent, what is the after-tax cash flow from the sale of this asset?

Reference no: EM131957115

Questions Cloud

Write a two page double spaced answering the given question : Write a 2 page typed double spaced answering the question If you were give a 3 million budget to build your dream hotel--what would it be?
What is the accumulated value in the fund : You makes these payments for 15 years. After your last payment, what is the accumulated value in the fund?
Discuss how the return on equity presentation : Discuss how the Return on Equity presentation can facilitate the integration of the financial plan and the management control process.
Which bond should the investor select : The other is a municipal bond with a 5½ percent coupon, and it, too, sells at par. Assuming all other relevant factors are equal
What is the after-tax cash flow from the sale of this asset : If the relevant income tax rate is 40 percent, what is the after-tax cash flow from the sale of this asset?
What was the actual real return : What was the actual (ex post) nominal one-year return on your bond for your one-year holding period? What was the actual (ex post) real return?
What is rate of return on investment : If the maintenance margin requirement is 30%, will you receive a margin call? What is the rate of return on your investment under the above scenario?
Qualitative aspect of financial planning process : Explain the importance of the qualitative aspect of financial planning process.
Use risk-neutral valuation to value call option : Given the following parameters use risk-neutral valuation to value a call option.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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