What is the book value of the equipment

Assignment Help Financial Management
Reference no: EM131962818

The Jones Company has just completed the third year of a? five-year MACRS recovery period for a piece of equipment it originally purchased for $302,000.

a. What is the book value of the equipment?

b. If Jones sells the equipment today for $175,000 and its tax rate is 35%?,

what is the? after-tax cash flow from selling it?

Reference no: EM131962818

Questions Cloud

How much will ian be willing to pay for the mortgage : There are Treasury bond futures contracts available for delivery in three months. A Treasury bond contract is for $100,000 in face value of Treasury bonds.
Financial forecasting methods to help manage rapid growth : Explain how you could use financial forecasting methods to help manage rapid growth.
What is your estimate of callahan cost of common equity : If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity?
Describe the unique elements of services : Why do firms have trouble managing their cash flow? What events cause a cash flow crisis? Describe the unique elements of services.
What is the book value of the equipment : The Jones Company has just completed the third year of a? five-year MACRS recovery period for a piece of equipment it originally purchased for $302,000.
Determine the johns annualized holding period return : During this period the stock paid dividends of $5.65 per share. What is John's annualized holding period return (annual percentage rate)?
Calculate the cost of internal common equity : Cost of equity) The common stock for the Bestsold Corporation sells for $58. If a new issue is sold, the flotation costs are estimated to be 8 percent.
Whole brain death-persistent vegetative state : What is the difference between "whole brain death" and "persistent vegetative state"?
What is its wacc : Johnny Cake Ltd. has 10 million shares of stock outstanding selling at $21 per share and an issue of $50 million in 10 percent annual coupon bonds.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate deci-bells degree of operating leverage

Deci-Bell, Inc. is producing new headphones, but first management wants to determine its degree of operating leverage. Deci-Bell Inc. has a base level of sales of 325,784 units. Sales price per unit is $151.98 and variable cost per unit is $ $69.78. ..

  Expected rate of return and standard deviation

Calculate the expected rate of return and standard deviation for each investment.

  Calculate the yield to maturity on this bond

Calculate the yield to maturity (YTM) on this bond.

  What was effective interest rate the engineer paid for loan

What was the effective interest rate the engineer paid for the loan?

  Coincide with the interests of the managers of the firm

When the interests of the owners of a firm do not coincide with the interests of the managers of the firm, the literature of business calls this _______.

  Total of ten consecutive cash flows

Suppose you deposit $529 five years from today and each year thereafter deposit $529 for a total of ten consecutive cash flows (CF's); i.e. ten consecutive annual CF's beginning five years (t = 5) from today. Calculate the present value today (t = 0)..

  What is the amount of the required minimum distribution

what is the amount of the required minimum distribution?

  What prompted the growth of money market funds

What prompted the growth of money market funds? The total value of a mutual fund's stocks, bonds, and other assets minus any liabilities divided by the number of shares outstanding is the _____.

  How much net working capital does firm need to fund

JohnBoy Industries has a cash balance of $49,000, accounts payable of $129,000, inventory of $179,000, accounts receivable of $214,000, notes payable of $124,000, and accrued wages and taxes of $39,000. How much net working capital does the firm need..

  Do you think the Twitter IPO was successful

Do you think the Twitter IPO was successful? For the company? For investors? Alibaba's recent IPO in the US was somewhat unusual. What do you think about this IPO? Would you buy shares? Why or why not?

  What price must each widget be sold for the company

The Orion Company will produce 75,000 widgets next year. Variable costs will equal 25 percent of sales, while operating fixed costs will total $110,000. At what price must each widget be sold for the company to achieve an EBIT of $120,000?

  What volume is required to provie a pretax profit

Assume that a raiologist group practice ahs the folloiwng cost structure. Fixed costs: $500,000; Variable cost per procedure: $25; Charge (revenue) per procedure: $100. Furthermore, assume that the group expects to perform 7,500 procedures in the com..

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