Question

In: Finance

A new machine cost $44,000. The machine will be depreciated on a straight-line basis over 5...

A new machine cost $44,000. The machine will be depreciated on a straight-line basis over 5 years to a salvage value of $2,000. The machine will be sold 4 years from now for $23,000. If the tax rate is 18%, what is the after-tax gain on the sale of the machine? Round your answer to the nearest dollar.

Solutions

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

A new machine cost $47,000. The machine will be depreciated on a straight-line basis over 5...
A new machine cost $47,000. The machine will be depreciated on a straight-line basis over 5 years to a salvage value of $1,000. The machine will be sold 5 years from now for $15,000. The machine will provide 11,000 per year in savings for 5 years and will require net working capital investment of $1,000. The tax rate is 12% and the discount rate is 12%. Find the NPV of the project. Round your answer to the nearest dollar.
A new machine cost $45,000. The machine will be depreciated on a straight-line basis over 5...
A new machine cost $45,000. The machine will be depreciated on a straight-line basis over 5 years to a salvage value of $1,000. The machine will be sold 5 years from now for $16,000. The machine will provide 11,000 per year in savings for 5 years and will require net working capital investment of $2,000. The tax rate is 12% and the discount rate is 12%. Find the NPV of the project. Round your answer to the nearest dollar. ASAP...
The new equipment will cost $7,500. And it would be depreciated on a straight-line basis over...
The new equipment will cost $7,500. And it would be depreciated on a straight-line basis over the project's 5-year life (depreciation rate is 20% per year) and would require additional $200 net operating working capital that would be recovered at the end of the project's life. There is no salvage value. After purchasing this equipment, firm could sell 1000 products per year at $6 per one. And operating costs is 50% of sale revenue. Tax rate is 40% and Weighted...
The new equipment will cost $400,000. It would be depreciated to zero using straight-line depreciation over...
The new equipment will cost $400,000. It would be depreciated to zero using straight-line depreciation over a 5-year period. The estimated salvage value is $100,000 at the end of the project. The initial requirement in net working capital is $55,000, all of which will be recouped at the end of the project. The projected operating cash flows are $155,500 per year. The tax rate is 30%. What is the internal rate of return on this 5-year project? Group of answer...
Daily Enterprises is purchasing a $14,000,000 machine. The machine will be depreciated using straight-line depreciation over...
Daily Enterprises is purchasing a $14,000,000 machine. The machine will be depreciated using straight-line depreciation over its 10 year life and will have no salvage value. The machine will generate revenues of $7,500,000 per year along with fixed costs of $2,000,000 per year. (please show steps) If Daily's marginal tax rate is 28%, what will be the cash flow in each of years 1 to 10 (the cash flow will be the same each year)? If the discount rate is...
Your firm needs a $725,000 machine. If purchased, the machine will be depreciated straight-line over seven...
Your firm needs a $725,000 machine. If purchased, the machine will be depreciated straight-line over seven years and is expected to have a residual value of $25,000 at the end of the seventh year. Your (pre-tax) cost of borrowing is 6.5% and tax rate is 21%. If this is a non-tax lease, with beginning of year payments, what is the maximum lease payment for which you would prefer the lease to the alternative of borrowing money to buy the machine?
Daily Enterprises is purchasing a $10,000,000 machine. The machine will be depreciated using straight-line depreciation over...
Daily Enterprises is purchasing a $10,000,000 machine. The machine will be depreciated using straight-line depreciation over its 8 year life and will have no salvage value. The machine will generate revenues of $7,500,000 per year along with fixed costs of $3,500,000 per year. If Daily's marginal tax rate is 31%, what will be the cash flow in each of years 1 to 8 (the cash flow will be the same each year)? Enter your answer rounded to the nearest whole...
Daily Enterprises is purchasing a $6,000,000 machine. The machine will be depreciated using straight-line depreciation over...
Daily Enterprises is purchasing a $6,000,000 machine. The machine will be depreciated using straight-line depreciation over its 6-year life and will have no salvage value. The only costs are fixed costs of $2,000,000 per year. What is the net present value break-even level of sales revenue if the tax rate is 40 percent and the discount rate is 10 percent?
The following capital budgeting proposal: $100,000 initial cost, to be depreciated straight- line over 5 years...
The following capital budgeting proposal: $100,000 initial cost, to be depreciated straight- line over 5 years to an expected salvage value of $5,000, 35% tax rate, $45,000 additional annual revenues, $15,000 additional annual expense, $8,000 additional investment in working capital, and 10% cost of capital. Calculate the following methods. 1. NPV 2. Payback period 3. Modified IRR, a required rate of return is 12% 4. Briefly compare and contrast the NPV, Payback period and MIRR criteria, What are the advantages...
The following capital budgeting proposal: $100,000 initial cost, to be depreciated straight- line over 5 years...
The following capital budgeting proposal: $100,000 initial cost, to be depreciated straight- line over 5 years to an expected salvage value of $5,000, 35% tax rate, $45,000 additional annual revenues, $15,000 additional annual expense, $8,000 additional investment in working capital, and 10% cost of capital. Calculate the following methods. 1. NPV 2. Payback period 3. Modified IRR, a required rate of return is 12% 4. Briefly compare and contrast the NPV, Payback period and MIRR criteria, What are the advantages...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT