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

Assignment Help Financial Management

Reference no: EM13911712

Suppose you sell a fixed asset for $115,000 when it's book value is $135,000. If your company's marginal tax rate is 39%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

$12,200 $20,000 $135,000 $122,800

Reference no: EM13911712

Questions Cloud

Compare the descriptive statistics you calculated : Compare the descriptive statistics you calculated to the population statisticsreported. Were there differences? Why or why not? Do you think that the sample you picked was representative of the population? Explain your response

Evaluate the proposed acquisition of a new special-purpose : You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $320,000. The truck falls into the MACRS 10-year class, and it will be sold after 10 years for $57,000. The firm's marginal t..

Loss of hydrochloric acid : In the second step, phenol is coupled (at the para position) to the diazonium sal t with the loss of hydrochloric acid, to form a yellow- orange azo dye. draw a reaction scheme.

What is the required rate of return on the market : Fiske Roofing Supplies' stock has a beta of 1.23, its required return is 10.25%, and the risk-free rate is 4.30%. What is the required rate of return on the market? (Hint: First find the market risk premium.)

What will be the after-tax cash flow of this sale : Suppose you sell a fixed asset for $115,000 when it's book value is $135,000. If your company's marginal tax rate is 39%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

Osmotic pressure of a solution : Albumin is human protein plasma with a molar mass of 69 000 g mol-1. What would be the osmotic pressure of a solution of this protein containing 2.0 g per 100 mL at 25oC.

What will the year two cash flows for this project be : You are evaluating a product for your company. You estimate the sales price of product to be $110 per unit and sales volume to be 10,100 units in year 1; 25,100 units in year 2; and 5,100 units in year 3. The project has a 3 year life. The tax rate ..

Gandolfi construction company purchased a used cat : Gandolfi Construction Co. purchased a used CAT 336DL earth mover at a cost of $325,000 in January 2013.

What is the promoters expected profit : What is the promoter's expected profit? Is the expected profit a reasonable decision criterion? Explain. How much should an insurance company charge to insure the promoter's full losses? Explain your answer.

User Account

All Pages