What is the annual tax shield

Assignment Help Financial Accounting

Reference no: EM13793426

1. Your boss asked you to calculate the tax shield on the new fleet of tractors the company has purchased. The annual depreciation on the tractors is estimated to be 247,500 and the company's estimated tax rate is 35%. What is the annual tax shield?

2. Conan O'Brien signed a three year contract to host the Tonight Show. Although he will receive 130 million dollars over three years, the terms of the contracts are that he is to receive 10 million at the end of each of the next three years plus an additional 100 million at the end of the third year. Assuming an annual interest rate of 10%, what is the actual value of O'brien's contract in today's dollar?? (Hint thinks of two separate calculations)

Reference no: EM13793426

Questions Cloud

What happens when a fixed cost is increased or decreased : What happens when a fixed cost is increased or decreased? How do you measure the degree of operating leverage?

Summary on marketing executive : marketing executive

What roles did black slaves play in the civil war : What roles did Black slaves play in the Civil War? What roles did free Blacks play in the Civil War? How did the war affect each group?

How to calculate depreciation for business of the home : How to calculate depreciation for business of the home. Coles purchased their present residence in April 2010, they devoted 450 of the 3,000 square feet of living space to an office for David. The property cost $440,000 ($40,000 of which is attributa..

What is the annual tax shield : Your boss asked you to calculate the tax shield on the new fleet of tractors the company has purchased. The annual depreciation on the tractors is estimated to be 247,500 and the company's estimated tax rate is 35%. What is the annual tax shield?

How long was the money left in account : Bill Dunn made an investment on July1, 2007 which earned $9,000 and 12% return on July 1, 2008. How much did Bill invest?? Answer should be 75,000. Leshonda wins 12,000 in the Georgia Lottery and invests the money in an account that earns 10% interes..

Values related to technology and industrialized nations : What are some recommendations for shaping the 21st century as far as determining new technologies, their use and highly developed nation's values?

Market plan section : Market Plan Section

Accural of interest and amortization of bond discount : On August 1, Clayton Co. issued 1,300,000 of 20 year, 9% bonds, dated August 1, for $1,225,000. Interest is payable semi annually on February 1 and August 1. Present the entries to record the following transactions for the current year. Accural of in..

User Account

All Pages