What is the book value of the asset

Assignment Help Finance Basics
Reference no: EM132059537

Question: A project requires $256,625 of equipment that is classified as 7-year property. What is the book value of this asset at the end of year 3 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132059537

Questions Cloud

Determine the annual payments : If the effective annual interest rate is fixed and equal to 7.5% per annum determine the annual payments.
Discuss about the npv of the project : A project that provides annual cash flows of $3, 100 for nine years costs $10, 400 today. At a required return of 12 percent, what is the NPV of the project?
Considering buying the stocks of two companies : You are considering buying the stocks of two companies that operate in the same industry;
Find the maximum investment in working capital : What is the maximum investment in working capital for an acceptable project with a 15% weighted average cost of capital?
What is the book value of the asset : A project requires $256,625 of equipment that is classified as 7-year property. What is the book value of this asset at the end of year 3 given.
How much of the first loan payment is interest : How much of the first loan payment is interest?
What is aftertax cost of debt : What is the aftertax cost of debt if the tax rate is 40 percent?
What is woozless current share price : Suppose rather than reinvesting these earnings and grow, the firm plans to pay out all earnings as dividends.
Both bonds make semiannual payments : Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments.

Reviews

Write a Review

Finance Basics Questions & Answers

  Today you signed loan papers agreeing to borrow 495485 at 9

today you signed loan papers agreeing to borrow 4954.85 at 9 compounded monthly. the loan payment is 143.84 a month.

  Company a can borrow fixed at 14.8 percent

Company A can borrow fixed at 14.8 percent and floating at LIBOR percent. Company B can borrow fixed at 16.2 percent and floating at LIBOR+ 0.35 percent. A financial intermediary charges a fee of 0.14 percent. Company A wishes to borrow floating and ..

  What is the value of retirement plan

Given a 6 percent interest rate, what is the value of your retirement plan after the 40 years?

  Determine the strategic management

Based on what you have learned in this course, select two (2) companies from any industry of your choice, and compare their business models. Analyze the manner in which the set of strategies that each company pursues enables it to gain a competiti..

  Has the movement of your stock price varied greatly

Has the movement of your stock price varied greatly from that of the S&P500? Has the price of your stock increased (or decreased) significantly over the past five years?

  What is the cost of common equity capital for the firm

If the current price of Two-Stage's common stock is $28.98, what is the cost of common equity capital for the firm?

  What is the change in value of your portfolio

You own 100 shares of Amazon stock (AMZN) and are concerned that the price will go down. You do not want to sell because you have unrecognized capital gains and are in a high tax bracket.

  How large a stock dividend can the board legally declare

If the company sold its short-term investments, how large a cash dividend could it declare and pay? The current selling price of Oreton Corporation is $50 per share.

  Fama-french three-factor model

Fama-French Three-Factor Model

  How long before the savings account be sufficient

The Pebble Creek coach took the funds and invested them in a savings account that earns .4% per month. How long before the savings account be sufficient to buy the new uniforms?

  A company in your portfolio sears has a perpetual preferred

a company in your portfolio sears has a perpetual preferred stock non-maturing currently outstanding that pays a 2.00

  Calculate the bank initial cash outflow and its first two yr

The equipment will be depreciated on a straight-line basis over a 5-year estimated useful life with no expected salvage value. Assuming that Big Sky has agreed to annual lease payments of $10 million, calculate the bank's initial cash outflow and its..

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