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

Balance sheet, Balance Sheet: The balance sheet measures the financial ...

Balance Sheet: The balance sheet measures the financial position of the business at a particular point in time. It is also called Statement of Financial Position. The balan

Identify an analytic theme for fictitious business, 1. identify an analytic...

1. identify an analytic theme or goal for a fictitious business or something that you are working on (e.g. Maximize revenue in a car dealership) 2. Build an Enterprise Bus Matri

Operating cycle., operating cycle in vegetable growing business in uganda.....

operating cycle in vegetable growing business in uganda..

Sole proprietorship, Sole Proprietorship This business form is the lega...

Sole Proprietorship This business form is the legal default form for any person who makes no effort to organize the business otherwise but does business in the United States. T

Estimate incremental cash flows, You just recently joined Manawatu Blinds a...

You just recently joined Manawatu Blinds and Curtains (MBC) group, a partnership firm based in Manawatu region providing windows, dressings, and installations to both commercial an

Product pricing through simulation, Product Pricing Through Simulation ...

Product Pricing Through Simulation Having studied a simpler problem, let us revert to our earlier illustration regarding fixing a price. Let us suppose that we want to simul

Determine the no-arbitrage price, 1. Suppose Bank one offers a risk free i...

1. Suppose Bank one offers a risk free interest rate of 5.5% on both savings and loans, and Bank Enn offers a risk free interest rate of 6% on both savings and loans. What arbitra

Increased common stock cash dividend signal to stock holder, Do you believe...

Do you believe an increased common stock cash dividend can send a signal to the common stockholders? If so, what signal might it send? An enhance in cash dividends is often se

Apv capital budgeting framework helpful for foreign capital, What makes the...

What makes the APV capital budgeting framework helpful for analyzing foreign capital expenditures? The APV framework is a value- additivity method. As international projects fr

National cancer-incidence rates, Twelve cases of leukemia are reported in p...

Twelve cases of leukemia are reported in people living in a certain census tract over a 5 year period. Is this number abnormal is only 6.7 cases would be expected based on national

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages