What is the remaining ucc after year six

Assignment Help Financial Management
Reference no: EM131997943

A new electronic process monitor will cost Clarke Designs $154,000. This cost will be depreciated at 25 percent per year (class 9). The monitor will actually be worthless in six years. The new monitor would save Clarke $57,000 per year before taxes in operating costs. What is the remaining UCC after Year 6? Assume a tax rate of 40 percent.

Reference no: EM131997943

Questions Cloud

What is percentage change in the price of bond : If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam and Bond Dave?
Determine the costs of the process and the net benefits : Identifying a process improvement opportunity. Create a formula to calculate the benefits. Determine the costs of the process and the net benefits.
Compare the two designs on the basis of equivalent worth : Compare the two designs on the basis of equivalent worth per mile for a 16?-year period. Find the most economical design on the basis of AW and PW
Bond outstanding with annual interest payment : Preston Corporation has a bond outstanding with an annual interest payment of $100, a market price of $1,300, and a maturity date in 6 years.
What is the remaining ucc after year six : What is the remaining UCC after Year 6? Assume a tax rate of 40 percent.
Compute the current yield on both bonds : Bond X pays $78 annual interest and has a market value of $850. It has 13 years to maturity. Compute the current yield on both bonds.
Find market value of the bonds using semiannual analysis : Find the market value of the bonds using semiannual analysis.
What is the total external financing needed : If the firm is producing 80% capacity, what is the total external financing needed if sales increase 25%? assume the firm pays no dividends.
What is the effective yield to maturity : Assume a zero-coupon bond that sells for $348 will mature in 20 years at $1,350. What is the effective yield to maturity?

Reviews

Write a Review

Financial Management Questions & Answers

  Explain the importance of your credit standards

Assume you are a financial manager of a firm that sells most of its product on credit and also buys much of its raw materials on credit. Explain the importance of your credit standards that you extend to your customers. What are the options available..

  Investment strategy to show the existence of arbitrage

If the option can be bought or sold at $0.8 per share, devise an investment strategy to show the existence of arbitrage.

  Basic earning power exceeds its cost of debt financing

Company A's basic earning power (BEP) exceeds its cost of debt financing (rd). If it increases its debt ratio, then which of the following statements is CORRECT? a. Company A will increase its return on assets (ROA). b. Company A will increase its hi..

  A company issues zero coupon bonds which mature

A company issues zero coupon bonds which mature in 30 years. These bonds can be bought for $99.38 and then pay no annual interest payments, only $1000 at maturity. What is the annual percentage cost of these bonds to the issuing company?

  What will be the amount of deposits at the end

What will be the amount of deposits at the end of each year if it is compounded at 12% semi-annually

  Compunded annally

You have accumulated $591,147 for your retirement How much money can you withdraw for the next 30 years in equal annual end of the year cash flows.

  Weighted average contribution margin per unit for lambardi

Lambardi Company sells 3 types of bags. Bag A sells for $17 and has variable cost of $9.00 per unit. Bag B sells for $12 and has variable cost of $12.00 per unit. What is the weighted average contribution margin per unit for Lambardi?­­­­­­­­­­

  Calculate the spot rates from the forward rates

Given a forward rate for year one of 5%, a forward rate for year 2 of 5.2% and a year 3 forward rate of 5.6%, determine the interest swap rate (i.e at par yield rate for an equivalent bond). You will need to calculate the spot rates from the forward ..

  Explain the direct and indirect costs

Based on your interview gather and report the following; Explain the direct and indirect costs associated with the inventory in the organization

  What was the annual percentage increase in winners check

In 1904, the first Putting Green Championship was held. The winner’s prize money was $300. In 2009, the winner’s check was $1,560,000. What was the annual percentage increase in the winner’s check over this period?  If the winner’s prize increases at..

  What is the sustainable growth rate for the company

Gilmore, Inc., had equity of $215,000 at the beginning of the year. At the end of the year, the company had total assets of $370,000. During the year, the company sold no new equity. Net income for the year was $45,000 and dividends were $6,600. What..

  What is the average cash flow

What is the average cash flow you will receive from the mine if it is always kept in operation and the silver always is sold in the year it is mined?

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