User Account

All Pages

What is the cash inflow from selling the old helicopter

Assignment Help Accounting Basics
Reference no: EM131752977

Question - Bar T Ranches, Inc. is considering buying a new helicopter for $350,000. The company's old helicopter has a book value of $85,000, but will only bring $60,000 if it is sold. The old helicopter can be depreciated at the rate of $13,500 per year for the next four years. The new helicopter can be depreciated using the 5-year MARCS schedule. The new helicopter is expected to save $62,000 after taxes through reduced fuel and maintenance expenses. Bar T Ranches is in the 34% tax bracket and has a 12% cost of capital.

a. What is the cash inflow from selling the old helicopter?

b. What is the net cost of the new helicopter?

Reference no: EM131752977

Questions Cloud

What is the effective interest rate after the second year : What is the effective interest rate in the first two years? What is the effective interest rate after the second year?
Find ci for the difference in population mean coatings : Manufacturing and Product Development Certain masonry ties used in residential construction receive a hot-dipped galvanized finish for strength and protection.
What is the cash inflow from selling the old helicopter : Bar T Ranches, Inc. is considering buying a new helicopter for $350,000. What is the cash inflow from selling the old helicopter
What their managers are doing about pressuring : what their managers are doing about pressuring them to keep the audit client happy
What is the cash inflow from selling the old helicopter : Bar T Ranches, Inc. is considering buying a new helicopter for $350,000. What is the cash inflow from selling the old helicopter
Discuss your statistics project data analysis : Create a 10- to 15-slide presentation, including detailed speaker notes, discussing your statistics project data analyses.
What is jack and jill total stockholders equity : Jack and Jill Corporation's year-end 2009 balance sheet lists current assets of $241,000, fixed assets of $792,000, current liabilities of $183,500
Discuss an organization involved in activity-based costing : an organization involved in activity-based costing should have two cost systems one for internal use and one for preparing external reports
Discuss about the mean curve in toronto sticks : Assume the underlying distributions are normal, with unequal variances. Is there any evidence to suggest that the mean curve in Toronto sticks is different.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd