What would the after-tax cash flow be from equipment sale

Assignment Help Financial Management

Reference no: EM131130844

Today, Litchfield Design purchased a piece of equipment for 82,000 dollars that will be depreciated to 14,000 dollars over 17 years using straight-line depreciation. What would the after-tax cash flow be from the equipment sale if the equipment is sold in 6 years for 41,000 dollars and the tax rate is 30 percent?

Reference no: EM131130844

Questions Cloud

Difference between induction and deduction reasoning : Write a one page report about the difference between induction and deduction reasoning with an example from your area of research.(Business)

The time elapsed between at least two of the first : Let {N(t),t ≥ 0} be a Poisson process with rate λ = 2 per minute. What is the probability that the time elapsed between at least two of the first three events of the process is smaller than or equal to one minute?

Write essay on given topic : write an essay on " Assess the role of international trade policies and their impact on prices and the quantities traded and examine the effect of taxes and tarrifs on market efficiency" in your own language

How should steve respond to kim : The following is an excerpt from a conversation between the chief executive officer, Kim Jenkins, and the chief financial officer, Steve Mueller, of BKX Group Inc.: How should Steve respond to Kim?

What would the after-tax cash flow be from equipment sale : Today, Litchfield Design purchased a piece of equipment for 82,000 dollars that will be depreciated to 14,000 dollars over 17 years using straight-line depreciation. What would the after-tax cash flow be from the equipment sale if the equipment is so..

What is lu xun saying about life in this unusual story : Simply put, an allegory is a story in which the individual elements represent or symbolize some truth about human existence. Discuss Lu Xun's "Diary of a Madman" as an allegory. What is Lu Xun saying about life in this unusual story

Did you identify with people and situations in the selection : Did you identify with the people and situations in the selection? How? If not, how do you engage differently in interpersonal communication in similar situations to the ones described and analyzed?

Telephone calls to an emergency number : Let N(t) be the number of telephone calls to an emergency number in the interval [0,t]. We suppose that {N(t),t ≥ 0} is a Poisson process with rate λ = 50 per hour

What is the total amount of debt securities : What characteristics must debt ratings have in order to be useful to the capital markets? (See Understand Risk: The Truth About Credit Ratings.)

User Account

All Pages