What is the equipment after-tax salvage value

Assignment Help Financial Management

Reference no: EM131905405

Problem Walk-Through Problem 12-3 After tax salvage value Kennedy Air Services is now in the final year of a project. The equipment originally cost $33 million, of which 80% has been depreciated. Kennedy can sell the used equipment today for $8.25 million, and its tax rate is 35%. What is the equipment's after-tax salvage value? Round your answer to the nearest cent. Write out your answer completely. For example, 13 million should be entered as 13,000,000. $

Reference no: EM131905405

Questions Cloud

Contribution margin per unit and total contribution margin : Contribution Margin: Based on the Break-Even Analysis just performed, what is the contribution margin per unit and the total contribution margin?

Company capital structure weights on book value basis : Dinklage Corp. has 10 million shares of common stock outstanding. What are the company's capital structure weights on a book value basis?

What is the value of the lease on the fmri machine : What is the value (NAL) of the lease on the fMRI machine?

Semiannual reset period on floating leg : The manager chooses a swap with a semiannual reset period on the floating leg and a duration of 5 on the fixed leg.

What is the equipment after-tax salvage value : Kennedy can sell the used equipment today for $8.25 million, and its tax rate is 35%. What is the equipment's after-tax salvage value?

What is current price of bonds with four years to maturity : If the required rate of return on bnonds is 9%, what is the current price of the bonds with 4 years to maturity?

Net salvage value of old press if rumpel replaces : What is the net salvage value of the old press if Rumpel replaces it? today?

What is the firm optimal capital budget : Optimal Capital Budget Marble Construction estimates that its WACC is 10% if equity comes from retained earnings. What is the firm's optimal capital budget?

Cost of common equity with flotation : New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. what would be the cost of new equity?

User Account

All Pages