What is the present value of the cca tax shield

Assignment Help Finance Basics
Reference no: EM131936585

You purchase a machine for $210,000 which belongs in a 30% CCA class. What is the present value of the CCA tax shield on the machine if it is sold at the end of the sixth year for $24,000, your tax rate is 34%, and the appropriate discount rate is 10%?

Reference no: EM131936585

Questions Cloud

Design scientific investigations : Design a method to investigate the change. Remember to include a minimum of five trials in every independent variable group
Which of the initiatives should the company pursue : Calculate the NPV, discounted payback period, and IRR for each initiative. Which of the initiatives should the Company pursue, and why?
What is the approximate forward exchange rate : Assume the current U.S. dollar-yen spot rate is 90 ¥/$. Further, the current nominal 180-day rate of return in Japan is 1% and 2% in the United States.
Target debt–equity ratio : Miller Manufacturing has a target debt–equity ratio of .45.
What is the present value of the cca tax shield : What is the present value of the CCA tax shield on the machine if it is sold at the end of the sixth year for $24,000, your tax rate is 34%, and the appropriate
What the implied annualized interest rate is : Assume that the cost of carrying silver includes storage costs. On March 7, 2017 the July 2017 futures contract traded at $ 17.585 per ounce.
Monthly debt service payment on marco loan : What is the monthly debt service payment on Marco's loan if Enrique lends him $15,000 for four years at 8% interest?
What is the external financing needed : no dividends are paid. next year's sales are projected to be 9900. what is the external financing needed?
General partners and davidson the limited : Bellamy, Carlisle, and Davidson formed a limited partnership. Bellamy and Carlisle were the general partners and Davidson the limited partner.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the portfolio variance

A portfolio is expected to return 15 percent in a booming economy, 9 percent in a normal economy, and -3 percent in a recessionary economy. The probability a booming economy is 15 percent while the probability of a recession is 5 percent. What is ..

  Alternatives for leasing space in an office building

A building owner is evaluating the following four alternatives for leasing space in an office building for the next five years. Write a two-three page paper and prepare an Excel spreadsheet evaluating each of the four different lease options.

  What you know about the two brands

A few years back, Disney entered into a long-term agreement with McDonald's that included, among other things, joint promotions. From Disney's perspective and what you know about the two brands, was this the right decision?

  Determine the annual repayment schedule for the first two

determine the annual repayment schedule for the first two years i.e. interest principal payment and balance owed for

  What does the coefficient of variation reveal

What does the coefficient of variation reveal about an investment's risk that the standard deviation does not?

  Return on total assets

Barnes Corp's total assets at the end of last year were $415,000,000 and its net income after taxes was $17,750,000. What was its return on total assets?

  What is the purpose of random assignment to conditions

In what ways are experimental research designs preferable to correlational or descriptive designs? What are the limitations of experimental designs?

  An mne should consider individual country norms

An MNE should consider individual country norms

  Determined about a specimen

What could be determined about a specimen if you observed a slide image showing the specimen with a cell wall, but no nucleus or mitochondria?

  Explain the two possible reasons why rate on similar-risk

complex systems has an outstanding issue of 1000-par-value bonds with a 12 coupon interest rate. the issue pays

  Financial theory and concepts

This assessment task covers topics covered in week 1 to 6 and has been designed to ensure that you are engaging with the subject content on a regular basis.

  What is the relationship in terms of the slope of the sml

What is the relationship in terms of the slope of the SML? Why is this important? Discuss the effect of the advice received on your long term asset allocation.

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