AFTER TAX SALVAGE VALUE Karsted Air Services is now in the final year of a project....

AFTER TAX SALVAGE VALUE

Karsted Air Services is now in the final year of a project. The equipment originally cost $27 million, of which 80% has been depreciated. Karsted can sell the used equipment today for $6.75 million, and its tax rate is 40%. What is the equipment's after-tax salvage value? Round your answer to the nearest dollar. Write out your answer completely. For example, 13 million should be entered as 13,000,000.

Solutions

Expert Solution

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

AFTER TAX SALVAGE VALUE Karsted Air Services is now in the final year of a project....

AFTER TAX SALVAGE VALUE Karsted Air Services is now in the final year of a project. The equipment originally cost $26 million, of which 90% has been depreciated. Karsted can sell the used equipment today for $6.5 million, and its tax rate is 35%. What is the equipment's after-tax salvage value? Round your answer to the nearest dollar. Write out your answer completely. For example, 13 million should be entered as 13,000,000.

AFTER TAX SALVAGE VALUE Karsted Air Services is now in the final year of a project....

AFTER TAX SALVAGE VALUE Karsted Air Services is now in the final year of a project. The equipment originally cost $23 million, of which 80% has been depreciated. Karsted can sell the used equipment today for $5.75 million, and its tax rate is 40%. What is the equipment's after-tax salvage value? Round your answer to the nearest dollar. Write out your answer completely. For example, 13 million should be entered as 13,000,000. $ ________ 4. REPLACEMENT ANALYSIS The Oviedo Company...

After tax salvage value Kennedy Air Services is now in the final year of a project....

After tax salvage value Kennedy Air Services is now in the final year of a project. The equipment originally cost $25 million, of which 85% has been depreciated. Kennedy can sell the used equipment today for $6.25 million, and its tax rate is 35%. What is the equipment's after-tax salvage value? Round your answer to the nearest cent. Write out your answer completely. For example, 13 million should be entered as 13,000,000.

a. Karsted Air Services is now in the final year of a project. The equipment originally...

a. Karsted Air Services is now in the final year of a project. The equipment originally cost $23 million, of which 80% has been depreciated. Karsted can sell the used equipment today for $5.75 million, and its tax rate is 30%. What is the equipment's after-tax salvage value? Round your answer to the nearest dollar. Write out your answer completely. For example, 13 million should be entered as 13,000,000. b.Clemson Software is considering a new project whose data are shown...

1. Karsted Air Services is now in the final year of a project. The equipment originally...

1. Karsted Air Services is now in the final year of a project. The equipment originally cost $20 million, of which 75% has been depreciated. Karsted can sell the used equipment today for $5 million, and its tax rate is 40%. What is the equipment's after-tax salvage value? Round your answer to the nearest dollar. Write out your answer completely. For example, 13 million should be entered as 13,000,000. 2. Project L costs $48,152.88, its expected cash inflows are $10,000...

Karsted Air Services is now in the final year of a project. The equipment originally cost...

Karsted Air Services is now in the final year of a project. The equipment originally cost $35 million, of which 90% has been depreciated. Karsted can sell the used equipment today for $8.75 million, and its tax rate is 30%. What is the equipment's after-tax salvage value? Round your answer to the nearest dollar. Write out your answer completely. For example, 13 million should be entered as 13,000,000. Marble Construction estimates that its WACC is 10% if equity comes from...

Karsted Air Services is now in the final year of a project. The equipment originally cost...

Karsted Air Services is now in the final year of a project. The equipment originally cost $26 million, of which 80% has been depreciated. Karsted can sell the used equipment today for $6.5 million, and its tax rate is 30%. What is the equipment's after-tax salvage value? Write out your answer completely. For example, 13 million should be entered as 13,000,000. Round your answer to the nearest dollar.

A project ends after 4 years. The after tax salvage value is 12,860 and the released...

A project ends after 4 years. The after tax salvage value is 12,860 and the released working capital equals 40,000 at the end of the project. Assume a 9.82% WACC and compute the present value of the terminal cash flows.

Which of the following is a correct calculation for after-tax salvage value if salvage value and...

Which of the following is a correct calculation for after-tax salvage value if salvage value and book value differ? A) Salvage – T(book value – salvage) B) (Initial cost - Salvage)T – (book value – salvage) C) Salvage – T(salvage – (initial cost – accumulated depreciation)) D) (Salvage – accumulated depreciation)T – (salvage – book value)

Find the present value of the depreciation tax shield and the present value of the after-tax salvage value

Find the present value of the depreciation tax shield and the present value of the after-tax salvage value, if the annual depreciation is $6,000 for 5 years, the after-tax salvage value is $9,000, and the tax rate is 40%. The required rate of return is 10%. The lease lasts for 5 years. Present value of depreciation tax shield = $9,098 Present value of after-tax salvage value = $34,117 Present value of depreciation tax shield = $22,744 Present value of after-tax salvage value...

Subjects