What is the pre-tax amount of the cash flow in year

Assignment Help Financial Accounting
Reference no: EM133327714

Question: Radtke Corporation faces a marginal tax rate of 30 percent. One project that is currently under evaluation has a cash flow in the fifth year of its life that has a present value of $12,000 (after-tax). Radtke Corporation assumes that all cash flows occur at the end of the year and the company uses 13 percent as its discount rate. What is the pre-tax amount of the cash flow in year 5? (Round to the nearest dollar.)

Present value tables or a financial calculator are required.

Reference no: EM133327714

Questions Cloud

What is the opportunity cost of producing bread in alpha : What is the opportunity cost of producing bread in Alpha (in terms of millions of gallons of milk)?
Should the rate be raised and what are pros and cons : What do you think? Should the rate be raised and What are pros and cons in doing so - To be incompliance with the FLSA, employers must be aware of minimum wage
What is race what is ethnicity how are the two related : What is race? What is ethnicity? How are the two related? Then provide an example of each drawing upon Zora Neale-Hurston's ethnography, Barracoon:
What are the rules for the period : What are the rules for the period of time during which the company should capitalize interest? In other words, when should we start (what conditions need to be)
What is the pre-tax amount of the cash flow in year : What is the pre-tax amount of the cash flow in year 5? (Round to the nearest dollar.) Present value tables or a financial calculator are required
Submit invoices after each completed haul : would pay for the hotel expenses for the drivers. In addition to providing receipts for the travel expenses, the drivers had to submit invoices after each
Explain what a trial balance and a bank reconciliation : Carry out some research of your own on trust accounting software programmes used in the real estate industry.
Which amortization is being taken during this period : HST was paid on the acquisition of all assets on which amortization is being taken during this period - All of the Other Operating Expenses involved
Would doing so actually achieve this result : Would doing so actually achieve this result? Please explain why or why not - One way ABC could have increased its Net Operating cash flow would have been

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare all journal entries required to account

PC Inc. follows ASPE and uses the expense approach to account for its premium programs. Prepare all journal entries required to account

  Estimate what is the npv of the project

You can purchase this project for $667k. If your firm's cost of capital (aka required rate of return) is 14.3%, what is the NPV of this project?

  About the job-order costing system

Durham Company uses a job-order costing system. Determine the under applied or over applied overhead for the year. Prepare an income statement for the year (hint: no calculation are required to determine the cost of goods sold before any adjustment f..

  What is the purpose of cross-referencing

What is the purpose of cross-referencing? Entries in the journal can be followed through to the ledger./ Makes it easy to trace back to the general journal.

  Considering moving its manufacturing facility

Xeno, Inc., is considering moving its manufacturing facility from southern Illinois to Mexico. The stakeholders in this corporate decision would include:

  Calculate the depreciation expense for pronghorn corp

Pronghorn Corp. purchased a machine on July 1, 2020, Calculate the 2020 depreciation expense if Pronghorn prepares financial statements in accordance with ASPE.

  Explain the financial management principle

Explain the financial management principle that "cash flows are the source of value", and critically discuss why some investors look more closely at the Cash

  Why if two mutually exclusive projects are being compared

Explain why, if two mutually exclusive projects are being compared, the shorter-term project might be ranked higher under the NPV criterion

  Explain advantage associated with abnormal operating earning

Describe and explain 4 advantages and disadvantages associated with abnormal operating earnings model (residual operating income model)

  Determine how much of the cash dividend amount

Determine how much of the cash dividend amount of $66,000 should be paid to each shareholder group under each of the conditions stated below

  Calculate amount of fixed manufacturing overhead

Calculate amount of fixed manufacturing overhead that will be included in ending inventory under full costing and reconcile it to the difference between income computed under variable and full costing.

  Calculate the average percentage change

Calculate the average percentage change, in absolute value, before a change of 25 basis points in the market interest rate, that is, in the yield to maturity

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