Economics question. Please answer Asap! Will provide thumbs up! The Shell Corporation has a 34% tax...

Economics question. Please answer Asap! Will provide thumbs up!

The Shell Corporation has a 34% tax rate and owns a piece of petroleum-drilling equipment that costs $130,300 and will be depreciated at a CCA rate of 30%. Shell will lease the equipment to others and each year receive $41,300 in rent. At the end of five years, the firm will sell the equipment for $29,700. All values are presented in today's dollars.

Calculate the overall present worth of these cash flows with tax effects if market interest rate is 10% and annual inflation rate is 2%.

(Note: Don't use the $ sign in your answer and round it up to 2 decimal places)

Solutions

Expert Solution

jeff jeffy answered 3 weeks ago

Next > < Previous

Related Solutions

Economics Question. Please answer ASAP! Will provide thumbs up! Car's annual operating and maintenance (O&M) costs...

Economics Question. Please answer ASAP! Will provide thumbs up! Car's annual operating and maintenance (O&M) costs are given by the following schedule: Year Value 1 50 2 100 3 100 4 170 5 240 If MARR = 10%, and it is known that the value of O&M costs in the first year is the base annuity, define the value of parameter G in the equivalent arithmetic gradient series. (Note: Don't use the $ sign in your answer and keep 2...

Please answer this question correctly and quickly for a thumbs up. In the Molly Anderson article...

Please answer this question correctly and quickly for a thumbs up. In the Molly Anderson article assigned for this class, Professor Anderson describes her food systems vision. Thinking about your own food systems vision, what are three things you would like to change or affect in the food system? Please respond by listing one thing you would like to do individually, one thing you would like society to do collectively, and one thing you think the UW could do to...

please leave alot of quality information and i will provide a thumbs up in return thank...

please leave alot of quality information and i will provide a thumbs up in return thank you 1. Joan is an Accountant who opposes the introduction of a new financial control system. For 15 years she has worked with a manual system. Now the firm is introducing a new computer-based system. How would you, as her manager, attempt to change Joan's attitude towards the new system? 2. Some people believe that perception is a more important explanation of behavior than...

PLEASE ANSWER WITH 200 WORDS OR MORE FOR A THUMBS UP RATING! THANK YOU! In 200...

PLEASE ANSWER WITH 200 WORDS OR MORE FOR A THUMBS UP RATING! THANK YOU! In 200 words or more, please explain why angel investments are important. *NOTICE* I do NOT need a definition of what angel investors are, I just need to know why angel investing is important

PLEASE ANSWER WITH 200 WORDS OR MORE FOR A THUMBS UP RATING! THANK YOU! In 200...

PLEASE ANSWER WITH 200 WORDS OR MORE FOR A THUMBS UP RATING! THANK YOU! In 200 words or more, list some examples of angel investment trends in the United States. *NOTICE* I do NOT need a definition of what angel investors are!

Please answer all of the following for thumbs up: Explain the problem of intellectual property theft....

Please answer all of the following for thumbs up: Explain the problem of intellectual property theft. Next, address the reasonable and customary processes and procedures which should be used to discourage or make it difficult for employees, managers, and executives to inadvertently misuse and/or steal the company's intellectual property (at a minimum, you must address data classification and marking, separation of duties, and least privilege). You should also identify and explain five or more best practices which the company should...

Please answer the last step for question 1. Answer it asap please. Thanks 1. Consider the...

Please answer the last step for question 1. Answer it asap please. Thanks 1. Consider the following data for three different samples from three different populations:Consider the following data for three different samples from three different populations: Sample 1 Sample 2 Sample 3 0 6 6 4 8 5 0 5 9 1 4 4 0 2 6 T = 5 T = 25 T = 30 G = 60 SS = 12 SS = 20 SS = 14 ∑X2...

Example of de jure and de facto corporation. PLEASE ANSWER ASAP

PLEASE ANSWER ALL PARTS FOR A THUMBS UP RATING, THANK YOU! 1) What are the main...

PLEASE ANSWER ALL PARTS FOR A THUMBS UP RATING, THANK YOU! 1) What are the main elements to take into consideration in preparing a financial forecast? 2) Once you develop an initial set of projected financial statements, what are some things to check to make sure the forecast makes sense? 3) In general, is it easier to plug a cash shortfall with debt or equity? Explain.

PLEASE ANSWER QUESTIONS WITH ALL CALCULATIONS! WILL GIVE THUMBS UP ! THANK YOU ! 6. Use...

PLEASE ANSWER QUESTIONS WITH ALL CALCULATIONS! WILL GIVE THUMBS UP ! THANK YOU ! 6. Use the information below and the Two-stage Growth Model to find Axis Capital’s intrinsic value. Forecast its cash flows from t+1 to t+3. If its current price is $37.54, is it over or under valued? t t+1 t+2 t+3 t+4 Beta 0.80 ROE 0.09 0.08 0.08 0.08 DPO 0.37 0.34 0.34 0.34 Div $1.64

Subjects