What is the aftertax cash flow from sale of asset

Assignment Help Financial Management

Reference no: EM132047203

A) What is the future value of $800 in 22 years assuming an interest rate of 11 percent compounded semiannually?

B) Consider an asset that costs $334,400 and is depreciated straight-line to zero over its 14-year tax life. The asset is to be used in a 7-year project; at the end of the project, the asset can be sold for $41,800.

Required :

If the relevant tax rate is 31 percent, what is the aftertax cash flow from the sale of this asset?

Reference no: EM132047203

Questions Cloud

Calculate the bank one-year repricing gap : Calculate the bank's one-year repricing gap (in millions of $).

What is the effective cost of borrowing in this case : What is the effective cost of borrowing in this case? Assume that default is extremely unlikely.

Similarities between barings bank and chosen institution : Describe the events that created the problem outlining the differences and similarities between Barings Bank and your chosen institution

What is the expected return on portfolio : If the expected returns on these stocks are 10 percent and 10 percent, respectively, what is the expected return on the portfolio?

What is the aftertax cash flow from sale of asset : If the relevant tax rate is 31 percent, what is the aftertax cash flow from the sale of this asset?

What is the portfolio weight for stock : A portfolio has 123 shares of Stock A that sell for $33 per share and 91 shares of Stock B that sell for $21 per share? What is the portfolio weight for Stock B

Calculate the net present value of project : Calculate the weighted average cost of capital. Calculate the net present value of the project.

What is the stock intrinsic value : The current risk free rate is 2% while the market risk premium is 6%. If the stock has a beta of 1.36. What’s the stock intrinsic value?

Social responsibility or environmental sustainability : Identify the second type of strategy as example two that relates to either social responsibility or environmental sustainability,

User Account

All Pages