What is the aftertax cash flow from the sale

Assignment Help Financial Management
Reference no: EM131306416

Consider an asset that costs $974,000 and is depreciated straight-line to zero over its ten-year tax life. The asset is to be used in a seven-year project; at the end of the project, the asset can be sold for $136,000.

If the relevant tax rate is 30 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Aftertax salvage value

Reference no: EM131306416

Questions Cloud

Explain keys to effectively managing leadership development : Discuss the keys to effectively managing leadership development at each of the following levels: a first-line supervisor, a middle manager, a senior manager, and the President/CEO.
Calculate the net present worth : A machine costs $980,000 to purchase and will provide $200,000 a year in benefits. The company plans to use the machine for 13 years and then will sell the machine and receive $20,000. The company’s interest rate is 12%. Calculate the Net Present Wor..
Return on the common stock investment is higher : From the investor's point of view, analyze the advantages and disadvantages of the three investment alternatives—common stock, bonds, and preferred stock. Why would an investor select an investment in bonds over common stock, even if the return on th..
Make a lognormal probability plot of the data : STAT 5105 Applied Survival Data Analysis Assignment. Compute a nonparametric estimate of F(t), the proportion of units failing as function of time. Plot your estimates with linear scale. Make a lognormal probability plot of the data
What is the aftertax cash flow from the sale : Consider an asset that costs $974,000 and is depreciated straight-line to zero over its ten-year tax life. The asset is to be used in a seven-year project; at the end of the project, the asset can be sold for $136,000. If the relevant tax rate is 30 ..
Summarize the main points of the article : You can easily retrieve possible articles by doing an online search using the terms "psychology" and "paying taxes." Summarize the main points of the article.
What are arguments for and against a federal reserve bank : In the modern Fed, would it be possible for a Reserve Bank to act as the New York Fed did in 1929?
Write your opinion about the given transcript : Write Your Opinion about the given Transcript. I don't I don't really think I've been battered. I mean it's not bad. I just been with this guy for a while and, my boyfriend, and he's fabulous. He's wonderful and we're gonna get married and.
Calculate the value of cash flow option : You have won the lottery and have the choice of the three cash flows each with a 7% rate of interest. You have won the lottery and have the choice of the three cash flows each with a 7% rate of interest.

Reviews

Write a Review

Financial Management Questions & Answers

  Consider cheese makers decision whether to continue to age

The TillamookCounty Creamery Association manufactures Tillamook Cheddar Cheese. It markets this cheese in four varieties: aged 2 months, 9 months, 15 months, and 2 years. At the shop in the dairy, it sells 2 pounds of each variety for the following p..

  What is the amount of each monthly payment

Warren's Diner needed a new location. This establishment spent $65,000 to refurbish an old shop and create the current facility. The firm borrowed 75 percent of the refurbishment cost at 8 percent interest for 11 years. What is the amount of each mon..

  What is the target debt–equity ratio

Lorre, Inc., recently issued new securities to finance a new TV show. The project cost $13.7 million, and the company paid $695,000 in flotation costs. If the company issued new securities in the same proportion as its target capital structure, what ..

  Minimum and maximum purchase prices for target company

Acquiring Company is considering buying target Company. Target Company is a small biotechnology firm that develops products licensed to the major pharmaceutical firms. Development costs are expected to generate negative cash flows during the first tw..

  How much do you need to borrow from your broker

Suppose that Facebook is selling at $75 per share. You are bullish on Facebook stock, and want to buy 1000 shares on margin. The initial margin is 50%. You can borrow from your broker at an interest rate of 6%. How much do you invest using your own m..

  What is the amount of each annuity payment

Uptown Insurance offers an annuity due with semi-annual payments for 25 years at 6 percent interest. The annuity costs $200,000 today. What is the amount of each annuity payment?

  Securities is best after adjusting for tax and credit risk

You are given the following three money market securities: A US T-bill offering a quoted yield of 6.75%; A bank CD offering a quoted yield of 7.56%; A MA Municipal bond offering a quoted yield of 4.25%; The quoted yield is before tax and credit risk ..

  What will dividend yield-capital gains yield be in two years

Suppose a company has a net income of $1,000,000 and a plowback ratio of 40%. There are 50,000 shares of stock outstanding. The company plans to increase dividends by 22% each year for the next 2 years and then apply a 2.25% growth rate to dividends ..

  Preparation of budgets and working capital management

Evaluate the CVP technique and explain the limitations of its use in the context of both the different interpretations of the CVP technique offered by the economist's model of CVP and other limitations.

  Invest in the optimal combination of projects

Assume that your capital is constrained, so that you only have $500,000 available to invest in projects. If you invest in the optimal combination of projects given your capital constraint, then the total net present value (NPV) for all the projects y..

  For purposes of the marital deduction

For purposes of the marital deduction, all the following are advantages of a power of appointment trust EXCEPT:

  What dollar price does the cap rate price

You are contemplating the purchase of an apartment building. Net operating income for the first year is expected to be $200,000 and increasing by 50% of the projected inflation rates in the forecast below. Comparable properties have cap rates ranging..

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