What is the after-tax salvage value

Assignment Help Financial Management

Reference no: EM131088127

Your firm needs a computerized machine tool lathe which costs $58,000 and requires $12,800 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 13 percent. If the lathe can be sold for $5,800 at the end of year 3, what is the after-tax salvage value?

Reference no: EM131088127

Questions Cloud

What is the return on assets and what is return on equity : Keller Cosmetics maintains an operating profit margin of 8.60% and a sales-to-assets ratio of 3.10. It has assets of $620,000 and equity of $420,000. Interest payments are $42,000 and the tax rate is 35%. What is the Return on assets? What is the ret..

How many drivers cross the bridge : If the city wishes to raise as much revenue as possible from the tolls, where will the city decide to charge a toll: in the inelastic portion of the demand curve, the elastic portion of the demand curve, or the unit elastic portion? Explain.

Describe the role of hr in outsourcing of training : How would the training differ in a company that is primarily research and development compared to one that has a dominant product presence? How would it be similar?

Nearness of a solitary stereoscopic magnifying : Although investigating a microbiological research center, an assessor discovered the nearness of a solitary stereoscopic magnifying device with a missing image.

What is the after-tax salvage value : Your firm needs a computerized machine tool lathe which costs $58,000 and requires $12,800 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...

Contributions of taylor and fayol : Discuss the basis of differences between the contributions of Taylor and Fayol.

Research to develop new computer game : KADS, Inc., has spent $340,000 on research to develop a new computer game. The firm is planning to spend $140,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $44..

Environment that might influence the organization : A stage of the HR planning process that emphasizes identifying, examining, or anticipating positive or negative factors in the external environment that might influence the organization.

How would you explain use of funds : Your coworkers think that the money being spent to remodel the emergency department should go to securing raises. How would you explain use of funds?

User Account

All Pages