User Account

All Pages

What is the terminal cash flow

Assignment Help Financial Accounting
Reference no: EM132920241

Problem 1: The terminal cash flow must be estimated when Nettext Corporation evaluates the relevant cash flows for a capital budgeting decision. At the end of its five-year useable life, the suggested machine will be sold for $2,000 on the open market. The machine costs $80,000 new, with a $20,000 installation fee, and will be depreciated over five years under the MACRS. The company's net working capital is anticipated to drop by $5,000. Ordinary income and long-term capital gains are taxed at 40% for the company. What is the terminal cash flow?

A. $8,200
B. $8,800
C. $6,200
D. $5,800

Reference no: EM132920241

Questions Cloud

What level of cover of each type of insurance should have : What level of cover of each type of insurance should she have (including the waiting and benefit periods for income protection, if recommended)?
Critically evaluate the paradigms of systems thinking : Critically evaluate the paradigms of Systems Thinking conceptualization and its application to contemporary business issues
Describe some of the issues associated with peter intestacy : Outline some of the estate planning strategies that Peter could have considered if he had prepared a will. Describe some of the issues associated with Peter
Explain qualitative and quantitative methodology : Identify and discuss the key differences between qualitative and quantitative methodology.
What is the terminal cash flow : What is the terminal cash flow? The terminal cash flow must be estimated when Nettext Corporation evaluates the relevant cash flows.
Construct the moral argument : In Turpin v. Sortini, the California Supreme Court said it was difficult to understand how awarding damages to a child who would not have been born if not for t
Calculate the preferred stock cost : A $3.5 yearly dividend will be paid on the stock. The stock was issued and sold at a cost of $2 per share. Calculate the preferred stock's cost.
Identify a non-famous business leader : Identify a "non-famous" business leader who you think is highly effective, and explain why you think they are effective. Identify at least three of the leadersh
Justify the kind of lease that is presented : Justify the kind of lease that is presented. Produce extracts from the statement of financial position including relevant notes as at Dec. 31, 2018

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare the statement of stockholders equity section

Prepare the Statement of Stockholders Equity Section. There are 60,000 shares authorized by the company and 45,000 shares issued and outstanding and 4,000 shares subscribed at $30 a share.

  Find the price of a call option on the stock

The annual risk-free rate is 5%. Find the price of a call option on the stock that has an exercise price of $42 and that expires in 1 year

  What will do now to remedy the situation

If you wish to avoid the probate process, does your current plan accomplish this? Yes, explain. If no, what will you do now to remedy this situation?

  Qualified employment-relates expenses

Tim and Martha paid $7,9000 in qualified employment-relates expenses for their htree young children who live with them in their household. Martha received $1,800 of dependent care assistance from her employer, which was properly excluded from gross i..

  Straight-time depreciation on production equipment

Which of the following would be classified as a variable cost: straight-time depreciation on production equipment copy lease payment of 500 per month plus 0.01 per copy. fabric for use in quits to be produce salary of the department manager

  Consolidated group file separate income tax returns

Why might a consolidated group file separate income tax returns?

  Determine and estimate cost of common equity using the capm

Yield on 10 year T bond is 6%, market risk premium 4%, return on average last year was 10% Estimate the cost of common equity using the capm

  Arrangement of transaction flow in an accounting cyclethe

arrangement of transaction flow in an accounting cycle.the following is a list of the eight steps in the accounting

  Discuss the purpose of financial ratios

If we divided the users of financial ratios, such as short-term lenders, long-term lenders, and stockholders, which ratios would each prefer and why?

  The amount she had previously identified as bad debt

Last year, Jane identified $66,400 as a nonbusiness bad debt. In that tax year before considering the tax implications of the nonbusiness bad debt, Jane had $132,800 of taxable income, of which $6,640 consisted of short-term capital gains. This year,..

  Identification of lease as either operating or finance lease

Classify and identification of lease as either operating or finance lease. Provide arguments to support your classification.? Explain with an example.

  Compute the credit for child care expenses

Dave and Kathy have one child, who is under 13. Their AGI is $22,000. The child is in day care. Kathy was a full time student for 5 months of the year and had earned income of $1,000 attributable to a period she was not in school. The day care expens..

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