Opposite project - net present value, Financial Management

Assignment Help:

A company has the opportunity to sell an old machine. The machine is fully depreciated to a zero book value but could be sold for $5,000. If the company did not sell the machine, it would be able to use it for four more years and save $3000 in pretax costs in each of those years. The company has a 10% cost of capital and is in the 35% marginal tax bracket. Calculate net present value and internal rate of return.

Related Discussions:- Opposite project - net present value

The characteristics of the website development project, P Company manufactu...

P Company manufactures and sells a range of children's clothing through its retail shops and is currently designing a website in order to allow customers to purchase products onlin

Leverage, Evaluate the importance of leverage of financial management on a ...

Evaluate the importance of leverage of financial management on a small scale company.

Illustrations of substantive tests, Illustrations of substantive tests ...

Illustrations of substantive tests Agree a sample of wages payments to the existence of these individuals and personnel records. Agree a sample of cashbook payments to

Cash outflows and income statement of a company, a. You only need to compl...

a. You only need to complete the 2012 column, leave the 2011 column as is. b. Base you net income and certain other information needed from the income statement you completed in

Valuation using forward rates, We can discount cash flows either by u...

We can discount cash flows either by using spot rates or forward rates, because a spot rate is simply a package of short-term forward rates. Assume that the cash

Define relationship between bond''s market price and its ytm, What is the r...

What is the relationship between a bond's market price and its promised yield to maturity? Explain. A bond's market price relies on its yield to maturity abbreviated as YTM. Wh

Company default rate on account receivable when its too low, Can a company ...

Can a company have a default rate on its accounts receivable that is too low? Explain. A company might have a default rate on AR that would be considered too low if by liberal

Cost of preference capital, Cost of Preference capital (K ) The fixed ...

Cost of Preference capital (K ) The fixed rate of dividend payable to the Preference share holders is the cost of Preference capital. Exactly, the cost of Preference capital

Initial public offering (ipo), The process by which an organization increas...

The process by which an organization increase money by issuing equity and gets listed on a public stock exchange.

Financial planning, financial planning?

financial planning?

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages