What is total present value of after-tax operating income

Assignment Help Financial Accounting
Reference no: EM133170134

Question - TAN Inc. is considering a project that requires the purchase of $121,000 of equipment, which belongs in a 30% CCA class. The equipment will have a salvage value of $28,500 at the end of the three-year project. This project will bring in after-tax operating income of $61,300 per year for the three years. No investments in net working capital will be required. The corporate tax rate is 35% and the required rate of return is 16%. What is the total present value of the after-tax operating income that the project will bring?

Reference no: EM133170134

Questions Cloud

Contract for the international sale of goods : Semicontronics is an Australian manufacturing company that has been semi-manufactured electronics for over a decade. Semicontronics has a solid reputation for m
What is the organizational structure : 1. What is the "organizational structure"? Why is it important? What questions does it answer?
Disaster recovery documentation and recovery plan : Submit a report that discusses the techniques used by malware developers to disguise their code and prevent it from being analyzed. Give suggestions on how thes
How much should hepburn record as amortization expense : The company determined that the copyright would expire at the end of 2026. How much should Hepburn record as amortization expense
What is total present value of after-tax operating income : The corporate tax rate is 35% and the required rate of return is 16%. What is the total present value of the after-tax operating income
Complete the absorption costing report : As the cost Accountant you are required to complete the absorption costing report below to advise management on the estimated profit
Discuss the merits and limitations of proposal : Superb Consultants has submitted a proposal to analyze your organization's culture. The proposal states that Superb has developed a revolutionary new survey to
Integrate carlaris health system : What steps can be taken to integrate Carlaris health system and the physicians?
Build a model that will help the marketing department : Build a model that will help the marketing department to identify the potential customers who have a higher probability of purchasing the loan

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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