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

Provisions for paying off bonds, The issuer of the bond has to repay ...

The issuer of the bond has to repay the bondholders the principal by the stated maturity date. This can be repaid by the issuer in one lumpsum payment at the matu

Annual Inventory Costs., Harley Davidson purchases components from three su...

Harley Davidson purchases components from three suppliers. Components purchased from Supplier A are priced at $ 5 each and used at the rate of 240,000 units per year. Components pu

Report on acquiring the turbine machine in leaminger plc, REPORT To: T...

REPORT To: The Directors of Leaminger plc From: A business advisor Date: December 2002 Subject: Acquiring the turbine machine Introduction In financial

Define differences between foreign bonds and eurobonds, Describe the differ...

Describe the differences between foreign bonds and Eurobonds. Also discuss why Eurobonds make up the lions share of the international bond market. Answer: The two segments of t

Beta, Beta Beta is a measure of the market risk, or methodical risk, o...

Beta Beta is a measure of the market risk, or methodical risk, of a particular privacy or portfolio. Systematic risk defines any risk that influences the value of a huge numbe

Determine about the risk management systems, Determine about the risk manag...

Determine about the risk management systems Management must report to board their review and implementation of internal controls and risk management systems. The board must rev

Portfolio diversification, Portfolio Diversification The objectives of ...

Portfolio Diversification The objectives of diversification are to: Reduce the variability of the fund's total return; Reduce the exposure to any single component of t

Amount of the total liabilities, A firm has net working capital of -$800. L...

A firm has net working capital of -$800. Long-term debt is $15,400, total assets are $24,800 and fixed assets are $19,100. What is the amount of the total liabilities.

Define the concept of a real option, Define the concept of a real option. D...

Define the concept of a real option. Discuss some real options a firm can be confronted with when investing in real projects. A positive APV project is accepted under the supposi

Stock price calculations, I need help working through this problem. What is...

I need help working through this problem. What is the stock price of Firm X when provided the following information? Beta – 1.42 MRP – 10% Rf – 3% G – 4% Dividend next period-

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages