What is the after-tax salvage value

Assignment Help Business Economics
Reference no: EM131857843

Your firm needs a computerized machine tool lathe which costs $41,000 and requires $11,100 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 39 percent and a discount rate of 11 percent.

If the lathe can be sold for $4,100 at the end of year 3, what is the after-tax salvage value? (Round your answer to 2 decimal places.)

Salvage value after tax$

Reference no: EM131857843

Questions Cloud

What is the fair market price to today common stock : a. What is the fair market price to today's common stock?
What is the price per share today : The performance required for common shares is 20%. a. What is the price per share today?
Security price to be considered at equilibrium : What condition must exist for a security's price to be considered at equilibrium? Does this actually happen?
Present specific aspects of the given short story : Present specific aspects of the short story that help to illustrate your points. Make sure to quote from story and analyze specific lines that support argument.
What is the after-tax salvage value : If the lathe can be sold for $4,100 at the end of year 3, what is the after-tax salvage value? (Round your answer to 2 decimal places.)
What are the benefits of having a culturally diverse team : What plan do you suggest for handling communication problems involved in the given scenario? Why?
What output does the firm produce : Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is
What are the policy implications of the statement : Explain why this statement sounds correct based on the equilibrium condition in the goods market (in a closed economy):
Interest rate and adjusts the money supply : Suppose that the Fed sets the interest rate and adjusts the money supply accordingly (i.e., horizontal LM curve) and the economy is in recession.

Reviews

Write a Review

Business Economics Questions & Answers

  What is state bank leverage ratio

Suppose that some of State Bank's securities were bonds whose value was linked to riskysubprime mortgages. When some homeowners could not pay their monthly mortgagepayments, the value of these bonds fell.

  Borrower with project-what is your gain or loss

Suppose that you are a borrower with a project that has a rate of return of 6.8%. You submit a bid to borrow $1,000 at an interest rate of 5%, and a lender accepts your offer. After you fund your project and pay back your loan, what is your gain or l..

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  What is the difference in the amount of depreciation

he company will use the truck for eight years and will depreciate it over this period time with the SL method. What is the difference in the amount of depreciation that would be claimed in year five

  Under a situation of majority voting

How can a small special-interest group win, since the benefits flow only to a small group, under a situation of majority voting?

  Ramp up your mergers also acquisitions practice

if you were an investment banker, would you ramp up your mergers also acquisitions practice focused on this organization based on these estimates.

  Company produces one product at the output level

Suppose your company produces one product at the output level (75 units) that minimizes its average cost. At the current level of 75 units, your company’s average cost is equal to $750. What would be this company’s change in total cost if, instead of..

  Budget constraint is tangent to an indifference curve

Suppose you have $120 to spend on food and clothing. The price of food is $4 and the price of clothing is $8. a, Graph your budget constraint; calculate the slope of it. b, Briefly explain why your optimal choice is the point at which your budget con..

  The portfolios new beta be after these transactions

Portfolio Beta You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 0.75. You are considering selling $100,000 worth of one stock with a beta of 0.8 and using the proceeds to ..

  About paine resulting from the surgery

A surgeon performs a surgery on john smith. smith later complains to his surgeon about paine resulting from the surgery. his surgeon dismisses his complaints as not credible and eventually withdraws from the case. Describe the theories that could sup..

  The productivity slowdown and the great inflation

The productivity slowdown and the Great Inflation: Using the IS-MP diagram and the Phillips curve, explain how the productivity slowdown of the 1970s may have contributed the Great Inflation. With this belief, what monetary policy action would policy..

  Disenchantment with talona currency

International financial investors are moving funds from Talona to other countries. This depreciation is causing even more disenchantment with this Talona.

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