Question: A four year project involves equipment costing $2,580,000 that will be depreciated using the five-year MACRS schedule. If the estimated pre-tax salvage value for the

A four year project involves equipment costing $2,580,000 that will be depreciated using the five-year MACRS schedule. If the estimated pre-tax salvage value for the equipment at the end of the project's life is $283,800, what is the after-tax salvage value for the equipment? Assume a marginal tax rate of 34 percent.

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 four year project involves equipment costing $3,050,000 that will be depreciated using the five- year MACRS schedule. If the estimated pre-tax salvage value for the equipment at the end of the...

Question 1 3 pts Winston Corporation is evaluating a new project that will require an increase in accounts receivable of $80,000, an increase in inventory of $250,000, and an increase in accounts...

MACRS Depreciation Allowances Property Class Year 3-Year 5-Year 7-Year 1 33.33% 20.00% 14.29% 2 44.45 32.00 24.49 3 14.81 19.20 17.49 4 7.41 11.52 12.49 5 11.52 8.93 6 5.76 8.92 7 8.93 8 4.46 A four...

MACRS Depreciation Allowances Property Class 3-Year 5-Year Year 7-Year 1 33.33% 20.00% 14.29% 2 44.45 32.00 24.49 3 14.81 17.49 19.20 11.52 4 7.41 12.49 11.52 5 6 8.93 8.92 5.76 7 8.93 8 4.46...

need answered asap please! thank you! will leave postive review A four year project involves equipment costing $3,050,000 that will be depreciated using the three-year MACRS schedule. If the...

MACRS Depreciation Allowances Property Class Year 3-Year 5-Year 7-Year 33.33% 20.00% 14.29% 2 44.45 32.00 24.49 1 3 14.81 19.20 17.49 4 7.41 11.52 12.49 5 11.52 8.93 6 5.76 8.92 7 8.93 8 4.46 A four...

3. Louie's Leisure Products is considering replacing a project which will require the purchase of $1.4 million in new equipment. The equipment will be depreciated straight-line to a zero book value...

why do the NPV IRR and payback seem off for this problem? Inputs Taxrate: Variable cost/pound: Fixed cost/year X of NWC of annual sale: Cost of machine Aestoration Cost of the Farm * of Pretax...

A nine year project involves equipment costing $2,320,000 that will be depreciated using the five-year MACRS schedule. If the estimated pre-tax salvage value for the equipment at the end of the...

Using Venn diagrams graph and check the rules AU (BNC) = (AUB) (AUC) AN (BUC) = (ANB) U (ANC).

Using the data from Problem 11.19, determine which means are different using = 0.05. In Problem Block Sample 1 Sample 2 Sample 3 Sample4 10

Of these choices, a risk - adverse investor who prefers to minimize interest rate risk is most apt to invest in: Mimple Choice 5 year, 7 percent coupon bonds. 2 year, 7 percent coupon bonds. 3 - yeat...

A blank is generally regarded as satisfying the writing requirement for the statue of frauds in the case of an online sales is it oral acceptance webpage or email telecom come out information or none...

If your organization were contemplating using a team-based approach to increase productivity and reduce cost, what training issues would the organization be likely to face? How could the organization...

Imagine that you are an HRD professional who has just finished conducting a training program for a group of supervisors at a manufacturing plant. When you ask if there are any questions, one of the...

Think about the last time you had a problem with your own performance, either on the job or in one of your classes. Using the nine-step performance analysis model from Fournies, try to identify the...