What level of pretax cost savings

Assignment Help Financial Management
Reference no: EM131973695

A proposed cost-saving device has an installed cost of $670,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes. The required initial net working capital investment is $49,000, the marginal tax rate is 30 percent, and the project discount rate is 8 percent. The device has an estimated Year 5 salvage value of $74,000. What level of pretax cost savings do we require for this project to be profitable? MACRS schedule. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131973695

Questions Cloud

Value of cryptocurrencies stabilizing in the future : Do you see the value of cryptocurrencies stabilizing in the future and do you see them as a long term and predictable way of doing trade and commerce?
Begin working as financial analysts : Christian and Sarah both graduate from Wisconsin University and begin working as financial analysts.
What is the value of the mortgage after the payment : What is the value of the mortgage after the payment of the fifth annual installment?
What impact do you see bitcoin and other cryptocurrencies : What impact do you see Bitcoin and other cryptocurrencies having on the way people view saving money in the future?
What level of pretax cost savings : What level of pretax cost savings do we require for this project to be profitable? MACRS schedule.
Assume that the? risk-neutral probability : Assume that the? risk-neutral probability of each possible rate is the same. What is the value today of this? project?
Compute the net present value of this investment : compute the net present value of this investment.
Identify most important sales promotion tactics and tools : Identify the most important sales promotion tactics and tools used by Virgin around the world (pick two countries). Compare the above Virgin sales promotion.
Traditional commerce and methods of payment : What changes do you see happening to traditional commerce and methods of payment (Cash, Credit Card, PayPal, Barter etc.) as a result of cryptocurrencies.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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