Question

Using Excel Q1: Your company is evaluating a new project that will require the purchase of...

Using Excel Q1: Your company is evaluating a new project that will require the purchase of an asset for $22,000 installed. The asset will be depreciated S/L for 5 years to a zero salvage. Your company is expecting the asset to have a market value of $5,500 at the end of 4 years. The applicable tax rate is 30% and the cost of capital is 12%

a) Calculate the after tax asset value for the asset at the end of 4 years.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

NOTE : CALCULATION OF ACCUMULATED DEPRECIATION : 22000*4/5 = 17600

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Using Excell Q1: Your company is evaluating a new project that will require the purchase of...
Using Excell Q1: Your company is evaluating a new project that will require the purchase of an asset for $22,000 installed. The asset will be depreciated S/L for 5 years to a zero salvage. Your company is expecting the asset to have a market value of $5,500 at the end of 4 years. The applicable tax rate is 30% and the cost of capital is 12% a) Calculate the gain or (loss) from the sale of the asset at the...
Q2: Your company is evaluating a new project that will require the purchase of an asset...
Q2: Your company is evaluating a new project that will require the purchase of an asset for $25,000 installed. The asset will be depreciated S/L for 5 years to zero salvage. Your company is expecting the asset to have a market value of $4,000 at the end of 5 years. The applicable tax rate is 30% and the cost of capital is 12% a) Calculate the after tax asset value for the asset at the end of 5 years. b)...
A new project will require the purchase of an asset priced at $3,000, the asset will...
A new project will require the purchase of an asset priced at $3,000, the asset will require transportation and installation of $500. The project will also require an increase in net working capital of $800 in the initial period which is expected to be recovered in the last year. The after tax salvage of the asset at the end of 4 years is $300. Expected operating cash flows are given in the table below. year 1 2 3 4 OCF...
Pear Orchards is evaluating a new project that will require equipment of $227,000. The equipment will...
Pear Orchards is evaluating a new project that will require equipment of $227,000. The equipment will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company plans to shut down the project after 4 years. At that time, the equipment could be sold for $52,800. However, the company plans to keep the equipment for a different project in another state. The tax rate is...
Your company is considering a project which will require the purchase of $745,000 in new equipment....
Your company is considering a project which will require the purchase of $745,000 in new equipment. The company expects to sell the equipment at the end of the project for 25% of its original cost, but some assets will remain in the CCA class. Annual sales from this project are estimated at $268,000. Initial net working capital equal to 33.50% of sales will be required. All of the net working capital will be recovered at the end of the project....
Your company is considering a project which will require the purchase of $685,000 in new equipment....
Your company is considering a project which will require the purchase of $685,000 in new equipment. The company expects to sell the equipment at the end of the project for 25% of its original cost, but some assets will remain in the CCA class. Annual sales from this project are estimated at $244,000. Initial net working capital equal to 30.50% of sales will be required. All of the net working capital will be recovered at the end of the project....
Your company is considering a project which will require the purchase of $635,000 in new equipment....
Your company is considering a project which will require the purchase of $635,000 in new equipment. The company expects to sell the equipment at the end of the project for 25% of its original cost, but some assets will remain in the CCA class. Annual sales from this project are estimated at $224,000. Initial net working capital equal to 28.00% of sales will be required. All of the net working capital will be recovered at the end of the project....
Your company is considering a project which will require the purchase of $665,000 in new equipment....
Your company is considering a project which will require the purchase of $665,000 in new equipment. The company expects to sell the equipment at the end of the project for 25% of its original cost, but some assets will remain in the CCA class. Annual sales from this project are estimated at $236,000. Initial net working capital equal to 29.50% of sales will be required. All of the net working capital will be recovered at the end of the project....
Your company is considering a project which will require the purchase of $785,000 in new equipment....
Your company is considering a project which will require the purchase of $785,000 in new equipment. The company expects to sell the equipment at the end of the project for 25% of its original cost, but some assets will remain in the CCA class. Annual sales from this project are estimated at $284,000. Initial net working capital equal to 35.50% of sales will be required. All of the net working capital will be recovered at the end of the project....
Your company is considering a project which will require the purchase of $775,000 in new equipment....
Your company is considering a project which will require the purchase of $775,000 in new equipment. The company expects to sell the equipment at the end of the project for 25% of its original cost, but some assets will remain in the CCA class. Annual sales from this project are estimated at $280,000. Initial net working capital equal to 35.00% of sales will be required. All of the net working capital will be recovered at the end of the project....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT