User Account

All Pages

What the terminal value attributable to the new equipment

Assignment Help Accounting Basics
Reference no: EM133006773

Question - Calico Fabrics Limited is evaluating a new three-year project, for which the initial outlay will be $160,000. Profit before depreciation and tax is expected to be $34,000 in year 1, $44,000 in year 2 and $54,000 in year 3. The new equipment will be depreciated at 20 percent diminishing value, and is expected to be sold at the end of three years for $90,000. The company tax rate is 30 percent. What the terminal value attributable to the new equipment?

a. $57,344.

b. $81,920.

c. $87,576.

d. $92,424.

e. $93,720.

Reference no: EM133006773

Questions Cloud

What is the impact of the day trading : Of the 1,800 trades on the long side of the market, 1,240 were closing out positions and the remainder were new positions. What is the impact of the day trading
Briefly outline the key features of just-in-time system : If it takes two weeks to receive an order, at what point should Ferrer reorder hats? Briefly outline the key features of Just-in-Time system
How did manage to maintain their well-being for so long : Describe the oldest person you have ever known who also maintained a good quality of life and psychological well-being well into their later years.
How older adults see retirement as an ongoing process : List both the positive and the negative effects of employing older adults in the workplace. Describe how older adults see retirement as an ongoing process
What the terminal value attributable to the new equipment : Calico Fabrics Limited is evaluating a new three-year project, for which the initial outlay will be $160,000. What the terminal value attributable
Did the article introduce or draw upon unfamiliar terms : Are there any elements of the reading that find problematic? Anything that could have been discussed further? Did the article introduce or draw upon unfamiliar
Enter the beginning balance on a materials ledger card : Enter the beginning balance on a materials ledger card for each of the two inventory costing methods; FIFO and moving average
What purpose does the hypothesis serve : What purpose does the hypothesis serve? In this Discussion, you answer these questions and generate a hypothesis for your own proposed study.
How will change research question based on exploration : The best literature reviews are not individual summaries, How will change, refine, or focus your research question based on your exploration of the literature?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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