Question: Consider an asset that cost $ 7 0 5 , 0 0 0 in it depreciated straight line to zero over its nine year tax

Consider an asset that cost $

705, 000

in it depreciated straight line to zero over its nine year tax life. The asset is to be used in a six year project at the end of the project the asset can be sold for $

189, 000 .

If the relevant tax rate is

24 %

what is the after tax cash flow from the sale of the asset?

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!

i want you to solve the journal entries , t accounts and unadjusted trial balance for the given data and to put it in the table as given ACCT 1115 Ltd. Term Case You are working for ABC Ltd., for...

ECO Vietnam is planning to improve the transportation to Gia Bic Village by providing more eco- friendly option. The current fuel powered bus has been used for the past 4 years and was originally...

The Slyphen Corporation is considering investing in a new cane manufacturing machine that has an estimated te of three years. The cost of the machine is $30.000 and the machine will be depreciated...

Calculate adjusting journal entry X for Accounts receivable G E Debit 5,86,382 F Credit 1,30,307 4,56,075 75,000 75,000 1,07,500 1,07,500 26,061 26,061 2019 Account Titles 1-Jan Building Cash Notes...

Matrix Printers, Inc. is considering entering the laser printing business. An entirely new plant will be needed which will cost $1,500,000. Land for the plant will cost an additional $250,000. Both...

$1.00 Annual maintenance expense per panel aft year 1 7.00% Grid electricty costs annual inflation 3.00% Other costs inflation 8.00% Hurdle rate/discount rate 30.00% Tax rate 365 Days per year 10...

9. Create a PivotTable and complete the following fixed asset schedule. Future Electronics will include the schedule in the notes to its financial statements for fiscal 2020 (Express every number as...

A project requires an increase in net working capital of $225,000 at time 0 that will be recovered at the end of its 5 year life. If opportunity cost of capital is 7%, what is the effect on the NPV...

Assignment: Your firm has been hired as a finance consultant by Spartan Sprockets, Inc., who have decided to invest in a new sprocket manufacturing system.The company has narrowed the available...

Please see the attachment. Chapter 14 Accounting Complete a balance sheet for Bugant, Inc. at December 31, 2012 and an income statement for the year ending December 31, 2011. Assume semi-annual...

The average weight of a baby born in 1900 was 6 pounds 4 ounces. In 2000 the average weight of a newborn was 6 pounds 10 ounces. What is the rate of change of birth weight in ounces per year? What do...

What changes did the Federal Deposit Insurance Reform Act of 2005 make to the deposit insurance premium calculations?

The inflation rate in the United States is 1 0 percent while the inflation rate in Japan is 3 percent. The current exchange rate for the Japanese yen ( A A ) is $ 0 . 0 0 7 5 . After supply and...

Describe how total variable costs and unit variable costs behave with changes in the level of activity. If fixed costs increase, what would be the impact on the contribution margin and income from...