Question: 5. Use the table below to answer this question. MACRS 5-year property Year Rate 1 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.52% 6

5. Use the table below to answer this question. MACRS 5-year property Year Rate 1 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.52% 6 5.76% Ronnie's Custom Cars purchased some fixed assets two years ago for $115,000. The assets are classified as 5-year property for MACRS. Ronnie is considering selling these assets now so he can buy some newer fixed assets which utilize the latest in technology. Ronnie has been offered $59,500 for his old assets. What is the net cash flow from the salvage value if the tax rate is 34 percent? $58,038.00 $50,530.80 $55,200.00 $59,500.00 $46,026.48

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

A firm is reviewing a project with labor cost of $8.60 per unit, raw materials cost of $24.85 a unit, and fixed costs of $11,000 a month. Sales are projected at 10,600 units over the 3-month life of...

Suppose you bought a 11 percent coupon bond one year ago for $840. The bond sells for $885 today. Requirement 1: Assuming a $1,000 face value, what was your total dollar return on this investment...

Use the table below to answer this question. MACRS 5-year property Year Rate 1 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.52% 6 5.76% Ronnie's Custom Cars purchased some fixed assets two years ago for...

1. Marshall's & Co. purchased a corner lot in Eglon City five years ago at a cost of $670,000. The lot was recently appraised at $697,000. At the time of the purchase, the company spent $33,000 to...

1. Use the table below to answer this question. MACRS 5-year property Year Rate 1 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.52% 6 5.76% Ronnie's Custom Cars purchased some fixed assets two years ago for...

20. Marshall's & Co. purchased a corner lot in Eglon City five years ago at a cost of $530,000. The lot was recently appraised at $555,000. At the time of the purchase, the company spent $40,000 to...

Question 15 Consider a loan for $300,000 with 20 annual payment and an interest rate of 5%. What is the payment amount with a balloon payment of $35,000? $22,107.01 $22,409.43 $22,711.86 $23,014,29...

Use the table below to answer this question. MACRS 5-year property Year Rate 1 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.52% 6 5.76% Ronnie's Custom Cars purchased some fixed assets two years ago for...

What effect does height have on weight for a sample of 8 children? X ( Height in inches ) Y ( Weight in pounds ) X 2 Y 2 XY 60 99 48 70 55 80 55 79 51 84 52 90 49 82 50 79

Assume that the one-period Binomial Option Pricing model holds (n=1), with the following information (t = 1 year, S = $42, u = 1.1, d =0.9, K= $45, and r = 10%). What is the value of this European...

Which of the following statements is not correct abost the finuncial stabementa? Mutiple Choice An income stapement reports revenues, experses, and net hoose information. The statement of canh fows...

Which of the following are problems with identifying users of ABC? Multiple select question. ABC means different things to different organizations. Organizations will announce the discontinuance of...

Understand key international issues concerning: learning, training and talent development; high-performance working systems; worklife balance and diversity and equality.

1. What do employees who have family with special needs have to consider when accepting an international assignment?

understand the key issues concerning international assignments