What is the equipments after-tax salvage value

Assignment Help Financial Management

Reference no: EM131020542

Southern California Gas Co. is selling off some old equipment it no longer needs because its associated project has come to an end. The equipment originally cost $27,500, of which 75% has been depreciated. The firm can sell the used equipment today for $5,000, and its tax rate is 30%. What is the equipment's after-tax salvage value for use in a capital budgeting analysis?

Reference no: EM131020542

Questions Cloud

Evaluate arts decision-making skills : Read the case study titled "Meet Art" on page 147 in our textbook. How would you evaluate Art's decision-making skills? What would you have done differently? In this case study, how would you evaluate Joan's response to Art's request to move to Calif..

What is the present value-discount rate : What is the present value (PV) of $359,000 that is to be received at the end of 23 years if the discount rate is 11 percent? How would your answer change in Part (a) if the $359,000 is to be received at the end of 20 years?

Write an equation for the domestic demand curve : Given the above figure, write an equation for the domestic demand curve, Ddom. Given the above figure, write an equation for the domestic supply curve, Sdom. Show youar work

What must be true about the price elasticity of demand : According to the author of the article: "For this publisher, that means less revenue and less profit as some buyers reject the more expensive books." Does the fact that some buyers will no longer buy the publisher's books at a higher price necess..

What is the equipments after-tax salvage value : Southern California Gas Co. is selling off some old equipment it no longer needs because its associated project has come to an end. The equipment originally cost $27,500, of which 75% has been depreciated. The firm can sell the used equipment today f..

What is the limit of c as n increases without bound : Find the value of c when n = 5, n = 6. Graph c as a function of n. What is the limit of c as n increases without bound?

Assuming for simplicitys sake-resumption for productivity : Applying the 1.7 extra minutes per discharge, we estimated it would take an extra 425 minutes (1.7 times 250) to code the discharges in the first month. At $50 per hour, the cost per minute is $0.83 ($50 divided by 60 minutes) and the cost per claim ..

Would their attendance actually increase : A sportswriter writing about the Cleveland Indians baseball team made the following observation: "If the Indians suddenly slashed all tickets to $10, would their attendance actually increase?

What is the firms after tax cost of debt on the bond : A company is issuing a $1,000 par value bond that pays 7.0% annual interest and matures in 15 years that is paid semiannually. Investors are willing to pay $958 for the bond. The company is in the 18% marginal tax bracket. What is the firm's after ta..

User Account

All Pages