What is the after-tax salvage value

Assignment Help Financial Management

Reference no: EM131026090

Your firm needs a computerized machine tool lathe which costs $60,000 and requires $13,000 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 35 percent and a discount rate of 11 percent. If the lathe can be sold for $6,000 at the end of year 3, what is the after-tax salvage value? (Round your answer to 2 decimal places.)

Reference no: EM131026090

Questions Cloud

What role do stereotypes play in criminalizing puerto ricans : What role do stereotypes and prejudices play in criminalizing Puerto Ricans? Please provide at least two examples. How does the theory of assimilation apply to Cuban Americans?

How many armature conductors be placed in series in machine : The radius of the rotor (and thus, the torque arm for the armature conductors) is 0.1 m. The lengths of the armature conductors are 0.3m. Approximately how many armature conductors must be placed in series in this machine?

How many of each type of seat are there on the plane : An airplane has a total of 152 seats. The number of coach-class seats is 5 more than six times the number of first-class seats. How many of each type of seat are there on the plane?

What is shadow cost of equity : Shadow corp. has no debt but can borrow at 8%. the firm's WACC is currently 11% and the tax rate is 35%. i. What is shadow's cost of equity? ii. If the firm converts to 25% debt, what will its cost of equity be?

What is the after-tax salvage value : Your firm needs a computerized machine tool lathe which costs $60,000 and requires $13,000 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category...

Determine the speed and speed regulation : The armature resistance is 2Ω. Determine the speed and speed regulation if a load demanding a torque of 50 Nm is connected to the motor. Assume that the losses consist solely of heating of RA and frictional loss torque that is independent of speed..

Create relationships between the tables : Explain why a Database Management System is the appropriate tool for this project - explain why this Database Management System was developed as a Relational Database.

Ending inventory by the conventional : Markdowns 9,100, Beginning inventory (at cost) 43,720, Markdown cancellations 3,200, Beginning inventory (at sales price) 57,700, Freight on purchases 2,700. Compute the ending inventory by the conventional retail inventory method.

Bale electric company is a small rapidly growing : On January 1, a one-off payment of $175,000 is required to purchase new equipment. No depreciation is required to be calculated for this new equipment.

User Account

All Pages