What will be the after-tax cash flow of this sale

Assignment Help Financial Management

Reference no: EM13727388

Suppose you sell a fixed asset for $50,000 when its book value is $60,000. If your company's marginal tax rate is 40%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

Reference no: EM13727388

Questions Cloud

What is the net advantage to leasing : Delamont Transport Company (DTC) is evaluating the merits of leasing versus purchasing a truck with a 4-year life that costs $50,000 and falls into the MACRS 3-year class. If the firm borrows and buys the truck, the loan rate would be 9%, and the loa..

How will this impact ikea swedish concept : IKEA Case Study: What do you think? What would you do? What problems do you foresee and how will this impact IKEA's Swedish concept

What is valued by these participants : Explain why it is both necessary and helpful to study the context of prior history, especially the experiences of participants in that history, in order to understand what is valued by these participants.

Suppose the federal reserve increased deposits : Suppose the Federal Reserve increased deposits by $100 billion, but the reserve requirement on all deposits was 100%. What impact would the change in deposits have on the money supply?

What will be the after-tax cash flow of this sale : Suppose you sell a fixed asset for $50,000 when its book value is $60,000. If your company's marginal tax rate is 40%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

Cash flows for cash from financing activities : Walker Corporation conducted the following activities during 2001: (1) they sold 10,000 shares of their own stock for $15.00 per share; (2) they issued bonds for which they received $493,000;

Job characteristics and job demands : Explain how you can make changes in the job characteristics and job demands to increase job satisfaction and performance.

What historical root allowe your artifact to come into being : What historical roots allowed your artifact to come into being? Which cultural periods might have influenced its overall development as we see it today?

Create a growth and profitability strategy for exxon mobil : This week's team assignment involves your efforts to create a growth and profitability strategy for Exxon Mobil. As a MBA professional, you may be asked to help your organization, or a client organization, develop a strategy to push and deliver a..

User Account

All Pages