What the ratfcf associated with the purchase

Assignment Help Finance Basics
Reference no: EM133076201

Builtrite is considering purchasing a new machine that would cost$70,000 and the machine would be depreciated (straight line) down to $0  over its 10 year life. At the end of 10 years it is believed that the machine could be sold for $10,000. The current machine being used was purchased 3 years ago at a cost of $25,000 and it is being depreciated down to zero over its 5 year life. The current machine's salvage value now is $15,000. The new machine would increase EBDT by $45,000 annually. Builtrite's marginal tax rate is 34%.

What the RATFCF's associated with the purchase of this machine?

Reference no: EM133076201

Questions Cloud

Determining the holding period return : You bought 4,000 shares of XYZ Corporation for $20. During the year you earned $1.50 in dividend income and sold the shares for $33.00 at the end of the year. W
What are the key components of six sigma : Define the term system. What are the key components of Six Sigma? Discuss the differences between a first-party, second-party, and third-party audit.
Prepare all journal entries related to the sale : Assume that instead of holding onto the building, Algo sold it on January 1, 2023 for $400,000. Prepare all journal entries related to the sale
Managing for value creation : Book = Finance for Executives: Managing for Value Creation, 6th Edition; Authors: Gabriel Hawawini and Claude Viallet
What the ratfcf associated with the purchase : What the RATFCF's associated with the purchase of this machine?
Explain the term efficient portfolio : 1) Explain the term efficient portfolio. 2) How are the security market line and the capital asset pricing model related?
Self-awareness is essential skill : Self-awareness is essential skill for developing personally and professionally, being able to capitalize on your strengths and develop plan for self-improvement
What amount would you find on Waterway CVP income statement : The following information is available for Waterway Company: Sales $357000. What amount would you find on Waterway's CVP income statement
Calculate the rate of return on the bonds : Calculate the rate of return on the following bonds using the information provided. The real risk-free rate is currently 3.5%. The default risk premium on corpo

Reviews

Write a Review

Finance Basics Questions & Answers

  Assessment of the optimal leverage strategy

How would costly bankruptcy impact a firm's assessment of the optimal leverage strategy? Assume that the firm relies on Modigliani and Miller theorem.

  Despite the negatives of the options backdating scandal

Despite the negatives of the options backdating scandal, stock options have beneficial uses. List several appropriate uses of stock options.

  What is the current market value of the firm debt

CMS Corporation's balance sheet as of today is as follows: Long-term debt (bonds, at par)$10,000,000Preferred stock2,000,000Common stock ($10 par)10,000,000Re

  What is the value of a perpetuity that starts in one year

1 what is the value of a perpetuity that starts in one year that pays 10 per year and has an interest rate of 10?2 what

  Determine the net impact of sale on the us current account

Determine the net impact of this sale on the U.S current account, capital account and overall balance of payment for the year 2018.

  Explain the increase in price

Yesterday, you bought a put option on Japanese Yen for $45.00. Today the same put option is trading for $46.00. Briefly discuss all the reasons that could expla

  Estimate the intrinsic value of the three firms

Estimate the intrinsic value of the three firms using an appropriate discount factor based on your estimate of uncertainty and Ray Dalio's risk aversion. Compar

  Find what is cash flow under the current capital structure

Melanie, a shareholder of the firm, owns 160 shares of stock. What is her cash flow under the current capital structure, assuming the firm has a dividend payout

  Discuss the cycle of violence

Discuss the cycle of violence. Be as specific as possible to display your understanding of the concept. Why is it so important to study this? How can we prevent

  What is the expected return on billing stock

Billings, Inc. common stock has a beta of 1.2. If the expected risk free return is 4% and the expected market risk premium is 9%, what is the expected return on Billing's stock?

  Major categories of probability interpretations

1. Identify and discuss the two major categories of probability interpretations, whose adherents possess conflicting views about the fundamental nature.

  What is the ratio of us to british stamps

If the ratio of US to Indian stamps is 5 to 2 and the ratio of Indian to British stamps is 5 to 1, what is the ratio of US to British stamps?

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