Reference no: EM132790994
1.) Cherokee Hospital purchased 5 cars for a total of $100,000 three years ago. Now it is replacing the cars with newer vehicles. The company has depreciated 92.59% of the old cars, and sold these cars for a total of $ 25,000. Assume a tax rate of 40%. What is the cash inflow from the sale of these vehicles?
2.) Generic Health Services has a target capital structure of 30 percent debt and 70 percent equity. Its cost of debt estimate is 10 percent and its cost of equity estimate is 16 percent. It pays federal, state, and local taxes at a 40 percent marginal rate. What is the firm's corporate cost of capital?
3.) Good Health Hospital is considering the purchase of new MRI equipment that will cost $3 million. The equipment requires maintenance of $5,000 at the end of each of the next five years. After five years it will be sold for $500,000. Assume a cost of capital of 15% and no taxes. What is the present value of the cost of the equipment?
4.) Mercy Ambulance Services (MAS) is considering the replacement of an old ambulance. The old ambulance can be sold for $7,800 now. If it is sold in one year, the resale price will be $5,500, but MAS will spend $2,500 just before selling the truck to make it attractive to a buyer. Assume a cost of capital of 12%. What is the total cost of keeping the old ambulance for one more year? Express the cash flow in terms of its future value one year from now.
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What is the irr of something with a present value
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Foreign exchange loss incurred on the? transaction
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