What is the after tax initial investment in the defender

Assignment Help Econometrics
Reference no: EM13219888

A current asset (defender) is being evaluated for potential replacement. It was purchased four years ago at a cost of $62,000. It has been depreciated as a MACRS (GDS) five-year property- class asset. The present MV of the defender is $12,000. Its remaining useful life is estimated to be four years, but it will require additional repair work now (a one-time $4,000 expense) to provide continuing service equivalent to the challenger. The current effective income tax rate is 39%, and the after-tax MARR= 15% per year. Based on an outsider viewpoint, what is the after tax initial investment in the defender if it is kept ?

Reference no: EM13219888

Questions Cloud

Evaluating the boiling point and freezing point of solution : The antifreeze in a car was a 50% by weight solution of ethylene glycol C2H6O2 in water. Calculate the boiling point and freezing point of this solution. (for H2O: Kb= 0.52 C/m... Kf=1.86 C/m
Should einstein bagels spend more on advertising : The demand function for Einstein Bagels has been estimated as follows: Qx = -15.87 - 40.73Px + 84.17Py + 0.55Ax where Qx represents thousands of bagels; Px is the price per bagel; Py is the average price per bagel of other brands of bagels
What is the peak achievable performance : Consider a memory system with a level 1 cache of 32 KB and DRAM of 512 MB with the processor operating at 1 GHz. The latency to L1 cache is one cycle and the latency to DRAM is 100 cycles.
Calculate the minimal sum logic for each output : How would I do this problem? When it says 4-bit two's complement numbers, what does it mean?
What is the after tax initial investment in the defender : current asset (defender) is being evaluated for potential replacement. It was purchased four years ago at a cost of $62,000. It has been depreciated as a MACRS (GDS) five-year property- class asset. The present MV of the defender is $12,000.
Explain the same heat capacities as pure water : Determine q for the acid-base reaction, assuming that the liquids have densities of 1.00 g/mL and the same heat capacities as pure water.
Write a calculator program that is able to process an input : Write a calculator program that is able to process an input in postfix notation and give the result. You are free to use the built in stack class or create your own ones.
Should commodity be purchased in the uk or in us : A certain commodity cost 0.5 pound sterling in the United Kingdom. In U.S. denominated dollars, this same item can be purchased for 85 cents. The exchange rate is 1 pound sterling= $1.80 U.S. a. Should this commodity be purchased in the United King..
Compute the volumetric size of a water : Calculate the volumetric size of a water molecule in vapor, assuming 1 mole of the vapor occupies 22.4 L, as if the vapor were an ideal gas.

Reviews

Write a Review

Econometrics Questions & Answers

  Design a simple econometric research project

Design a simple econometric research project

  Multiplicative decomposition method

Multiplicative decomposition method

  Market for cigarettes

The Australian government administers two programs that affect the market for cigarettes.

  Solve the forecast model

Solve the forecast model

  What are the marginal abatement cost functions

What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).

  Write the t statistic for testing the null hypothesis

Explain why this model violates the assumption of no perfect collinearity.  Write the t statistic for testing the null hypothesis

  What is economics system

What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type

  Multiple choice questions related to market concentration

Determine when a competitively produced product generates negative externalities in production, the industry will,

  Calculating number of units produced by firm

Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital.

  Question about mobile commerce

M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.

  Calculating the average days past due and average flow time

Auto Data manufactures custom engineering testing machine. The following 5-orders are currently in the design department:

  Mechanism of an english auction and second price auction

Briefly discuss the difference between mechanism of an oral or English auction and a Vickrey or second price auction.

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