What is the equipment after-tax net salvage value

Assignment Help Finance Basics
Reference no: EM13292654

Net Salvage Value

Allen Air Lines is now in the terminal year of a project. The equipment originally cost $20 million, of which 80% has been depreciated. Carter can sell the used equipment today to another airline for $5 million, and its tax rate is 40%. What is the equipment's after-tax net salvage value?

 

Reference no: EM13292654

Questions Cloud

What bid price per carton should you submit : Your tax rate is 32 percent and you require a 13 percent return on your investment. What bid price per carton should you submit?
Explain what product or products would expect to obtain : What product or products would you expect to obtain by the addition of bromine to cis-cinnamic acid, assuming that it reacts by the same mechanism as the trans acid
Which of these cash flow streams has the highest present : Investment X offers to pay you $5,500 per year for nine years, whereas investment Y offers to pay you $8,000 per year for 5 years. Which of these cash flow streams has the highest present value if the discount rate is 5% If the discount rate is 22..
Example of computer-information technology policies : What is an example of computer/information technology policies and practices that address the disciplinary actions appropriate in these situations.
What is the equipment after-tax net salvage value : Allen Air Lines is now in the terminal year of a project. The equipment originally cost $20 million, of which 80% has been depreciated. Carter can sell the used equipment today to another airline for $5 million, and its tax rate is 40%. What is th..
Explain bromine to cis-cinnamic acid : What product or products would you expect to obtain by the addition of bromine to cis-cinnamic acid, assuming that it reacts by the same mechanism as the trans acid
Practicing inspection functions-practicing statistic control : Describe how you would recognize the differences between a company practicing inspection functions and one practicing statistical process control. Support your description with examples. Also, briefly describe how you would recognize if the company i..
What is the outward force on the window : A viewing window in the Atlanta aquarium is 58 inches wide and 52 inches high. what is the outward force on the window
Indicate the correct accept-reject decision for each : Calculate the IRR, the NPV, and the MIRR for each project, and indicate the correct accept-reject decision for each.

Reviews

Write a Review

Finance Basics Questions & Answers

  Find npv, irr and mirr for the project

The project would cost the firm $145,000. If the firm's cost of capital is 11%, find NPV, IRR and MIRR for the project. Do you accept this project? Why?

  What is the value of tax shields in each period

Such a capital cost is depreciated to zero with the straight-line method. Assume a 34% corporate tax rate and a discount rate of 10%.

  Sum of years digits method versus straight line method

Joe's Lawn Service has asked you to develop many financial spreadsheets and a written memo to help him understand his finances for his business.

  What is its future value

An investment will pay $200 at the end of each of the next 3 years, $400 at the end of Year 4, $500 at the end of Year 5, and $700 at the end of Year 6. If other investments of equal risk earn 10% annually, what is its present value? what is its f..

  What is the operating cash flow

Your firm has net income of $322 on total sales of $1,300. Costs are $720 and depreciation is $120. The tax rate is 30 percent. The firm does not have interest expenses. What is the operating cash flow?

  What is the npv for the following project

What is the NPV for the following project if its cost of capital is 15 percent and its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in..

  What will be the value of the equity

What will be the value of the equity if the firm repurchases all of its debt and raises the funds to do this by issuing equity? Assume that all of the assumptions in Modigliani and Miller's Proposition 1 hold.

  What is the taxable income for 2013

Almond Corporation has ordinary income from operations of $90,000, net long-term capital gain of $60,000, and net short-term capital loss of $65,000. What is the taxable income for 2013?

  Determine the price to maximize revenues

Suppose you are a manager at the DaimlerChrysler. Daimler-Chrysler has lost fund on the Smart car since 1st model rolled off the assembly line in 1998.

  Computing share price in a year

A share of stock sells for $35 today. The beta of stock is 1.2, expected return on market is 12%. The stock is expected to pay a dividend of $0.80 in one year.

  What was gdp in 2008 for illinois

What was GDP in 2008 for Illinois? How does Illinois rate when compared to other states?

  Microsoft motives for accumulating and holding cash

What are the business motives for holding cash in general? Of these motives, which one is most likely driving Microsoft's accumulation of cash? Explain your answer in detail.

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