Question: Bull & Bear Corp., is evaluating a new 5-year project. The equipment necessary for the project will cost $656,000 and can be sold for $115,000

Bull & Bear Corp., is evaluating a new 5-year project. The equipment necessary for the project will cost $656,000 and can be sold for $115,000 at the end of the project. The asset is in the 5-year MACRS class. The depreciation percentage for Year 1 is 20.00 percent, for Year 2 is 32.00 percent, then 19.20 percent, 11.52 percent, and 11.52 percent, and 5.76 percent in Years 3 - 6, inclusive and respectively. The company's tax rate is 20.0 percent. What is the after-tax salvage value of the equipment? Round your answer to three decimal places

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!

Bull & Bear Corp., is evaluating a new 5-year project. The equipment necessary for the project will cost $656,000 and can be sold for $115,000 at the end of the project. The asset is in the 5-year...

Bull & Bear Corp., is evaluating a new 5-year project. The equipment necessary for the project will cost $900,000 and can be sold for $180,000 at the end of the project. The asset is in the 5-year...

Bull & Bear Corp., is evaluating a new 5-year project. The equipment necessary for the project will cost $656,000 and can be sold for $115,000 at the end of the project. The asset is in the 5-year...

Bull \& Bear Corp., is evaluating a new 5-year project. The equipment necessary for the project will cost $656,000 and can be sold for $115,000 at the end of the project. The asset is in the 5-year...

Brummitt Corp., is evaluating a new 4-vear project. The equipment necessary for the project will cost $2,050,000 and can be sold for $283,000 at the end of the project. The asset is in the 5 -vear...

Brummitt Corp., is evaluating a new 4-year project. The equipment necessary for the project will cost $2,800,000 and can be sold for $313,000 at the end of the project. The asset is in the 5-year...

Please help me solve this problem. Please help me solve this problem. Check my MC algo 10-7 Calculating Salvage Value Brummitt Corp., is evaluating a new 4-year project. The equipment necessary for...

Brummitt Corp., is evaluating a new 4-year project. The equipment necessary for the project will cost $2,100,000 and can be sold for $285,000 at the end of the project. The asset is in the 5-year...

Redwing Corp., is evaluating a new 3-year project. The equipment necessary for the project will cost $555,000 and can be sold for $105,000 at the end of the project. The asset is in the 5-year MACRS...

There are four teachers in the Faber College Business School. Each semester, 200 students take each of the following courses: marketing, finance, production, and statistics. The ?effectiveness? of...

Suppose that the random variable x is normally distributed with mean = 500 and standard deviation = 100. For each of the following, use the normal table to find the needed value k. In each case,...

What does " B " stands for on the left most cell of input tap on Turing machine?

Critical value hypothesis A researcher would like to know whether there is a consistent, predictable relationship between verbal skills and math skills for high school students. A sample of 200...

Think of someone you know who is personcentered. Describe the specifi c skills this person uses and how they affect his or her communication.

In the chapter, we learned that language names experiences and that language is continuously evolving. Can you think of experiences, feelings, or other phenomena for which we dont yet have names?...

How might you assess the accuracy of Jims attributions? What questions could you ask him to help you decide whether his perceptions are well founded or biased? 3.. What constructs, prototypes, and...