What is the aftertax cash flow from the sale of asset

Assignment Help Financial Management

Reference no: EM132002979

Consider an asset that costs $511,000 and is depreciated straight-line to zero over its seven-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $168,000. If the relevant tax rate is 34 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations.)

Reference no: EM132002979

Questions Cloud

Calculate the price of five-year bond : Calculate the price of a five-year bond that has a coupon of 6.5% paid annually. The current market rate is 5.75%.

Considering new three-year expansion project : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.73 million.

What the net inflow or outflow is as measured : What the net inflow or outflow is as measured in U.S. dollars this year? The exchange rate for the euro is $1.29.

The difference between racial stigma and racial stereotyping : Describe the difference between racial stigma and racial stereotyping. Provide an example of each.

What is the aftertax cash flow from the sale of asset : If the relevant tax rate is 34 percent, what is the aftertax cash flow from the sale of this asset?

What kinds or types of variables are there : What is a Variable? What kinds or types of Variables are there?

What is the value created by firm and value of tax shield : What is the value created by the firm? What is the value of the tax shield?

Borland software and now standardized by iso : Explain why C++ originally marketed by Borland Software and now standardized by ISO is sometimes called "C with Classes" (fifty plus)

Practices for working on a large coding team : Research at least two best practices for working on a large coding team.

User Account

All Pages