User Account

All Pages

What is the equivalent annual saving

Assignment Help Finance Basics
Reference no: EM133060302

Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball for $70,000 and sell its old low-pressure glueball, which is fully depreciated, for $12,000. The new equipment has a 10-year useful life and will save $16,000 a year in expenses. The opportunity cost of capital is 9%, and the firm's tax rate is 21%. What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the investment immediately. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM133060302

Questions Cloud

Assessing a company future financial health : People should understand the impact of different types of risk on financial health, whether they're dealing with personal or corporate finances. The risks invol
What amount was received by Partner W : Additional information: Cash on hand at the beginning is P2,500. What amount was received by Partner W from the P56,000 cash distributed
What is the equivalent annual saving : What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the investment immediately.
Estimating the cost of bank? credit : Paymaster Enterprises has arranged to finance its seasonal? working-capital needs with a? short-term bank loan. The loan will carry a rate
What is the equivalent annual saving : Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball for $70,000 and sell its old low-pressure glueball, which i
What can you suggest to improve the business operations : You are the CEO of RPN Co., Ltd. and your team has prepared a budget for 2022. What can you suggest to improve the business operations
Find the value of the stock : A firm earned a $20 million free cash flow last year. The FCF is expected to grow at a constant rate of 10 percent forever. The firm has 5 million shares outsta
Economic growth levels of the countries : Do you think that the economic growth levels of the countries where Samsung does business are highly correlated? Do you think that the performance levels of the
Find out the short-term balances : Why do different firms make decisions differently concerning short-term balances? Does this type of reporting put investors at a disadvantage?

Reviews

Write a Review

Finance Basics Questions & Answers

  Name some marketing techniques and styles

Name some marketing techniques and styles that you have encountered that demonstrate many of the strongpoints we learned in this course.

  Compute the amount of the unrecovered investment

Compute the amount of the unrecovered investment for each of the 4 years using the rate of return on the unrecovered balance.

  Linen supply co paid a dividend of 325 on its common stock

linen supply co. paid a dividend of 3.25 on its common stock yesterday. the companys dividends are expected to grow at

  Calculate the monthly specific returns

Calculate the monthly specific returns (i.e. the residuals of the regressions) for CBA, WES and BHP for the 84-month in-sample period -  Calculate the historical variance of the monthly specific returns for CBA, WES and BHP for the 84 month in-sampl..

  Qualitative and quantitative analysis

Congratulations! Tony has promoted you! Now, he is going to take your analysis and information into account. He wants your input and information. Discuss the following:

  Considering investing in a company

You are considering investing in a company. Which financial ratios would you find most useful?

  Estimate the cost of equity

Amresh is interested in estimating the company's WACC and has collected the following information:

  An asset under your management with an estimated life of 20

an asset under your management with an estimated life of 20 years costs 5060000 to purchase and install. it has a

  Would you describe google as a happy ship

Would you describe Google as a happy ship? Is a happy ship always the most efficient and innovative? Why or why not?

  Explain what key audit matters are

1) Explain what Key Audit Matters (KAMs) are and why they are included in the Audit Report? (260 wc)

  Sydney saved 10000 during her first year of work after

sydney saved 10000 during her first year of work after college and plans to invest it for her retirement in 40 years.

  What are the main differences between the bond markets and

what are the main differences between the bond markets and stock

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