Question: Please answer clearly the following question; Consider an assets that costs $ 10403 and it is classified as three-year property under MACRS. The asset is

Please answer clearly the following question;

Consider an assets that costs $ 10403 and it is classified as three-year property under MACRS. The asset is to be used in a three-year project; at the end of the project, the asset can be sold for $ 2967. If the relevant tax rate is 35 %, what is the aftertax cash flow from the sale of this 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!

The Tuff Wheels was getting ready to start its development project for a new product to be added to its small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will...

1. Consider an assets that costs $ 13494 and it is classified as three-year property under MACRS. Calculate the annual depreciation allowance on year 1. 2. Continue with the previous question...

Continue with the previous question Consider an assets that costs $ 15705 and it is classified as three-year property under MACRS. The asset is to be used in a three-year project: at the end of the...

Please answer me the following question in your own words based on the study case illustrates the role of innovation and product develop than a single sheet would allow.' These layers are ment within...

S10-02 Relevant Cash Flows [LO1] Winnebagel Corp. currently sells 20,000 motor homes per year at $97,000 each and 14,000 luxury motor coaches per year at $145,000 each. The company wants to Introduce...

S10-01 Relevant Cash Flows [LO1] Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $3.6...

Relevant Cash Flows [LO1] Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $5 million in...

HELP PLEASE 4.139% 12:14 + Expert Q&A Braves Bus Tours wants to provide excursions to several national and international sports events that will be taking place throughout the country during the next...

1. Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $8 million in anticipation of using it as a warehouse and distribution...

11. Calculating Project Cash Flow from Assets (LOI) In the previous problem, sup- pose the project requires an initial investment in net working capital of $250,000, and the fixed asset will have a...

(True and False) 1. Telling a significant lie and getting away with it during an interview is usually very difficult if the interviewer is well trained. 2. If a suspect continually repeats phrases,...

Define f and g on R by f(x) = sin x and g(x) = x/|x| if x 0 and g(0) = 0. a) Find f(E) and g(E) for E = (0, ), E = [0, ], E = (-1, 1), and E = [-1, 1]. Compare your answers with what Theorems 9.26,...

rewrite The research question addressed in this article was how big data analytics can be applied to understand consumer behavior and how it can be combined with other disciplines to provide deeper...

1. Summarize the financial planning process. 2. Explain the relationships among financial values, goals, and strategies.

Harrison Company has a July 31 fiscal year end and uses a perpetual inventory system. The records of Harrison Company show the following data: After its July 31, 2017, year end, Harrison discovered...

(a) What suggestions can you offer Nina when she gets home from work and wants to discuss with herhusband her likely career promotion? (b) What lifestyle factors and benefits and costs issues should...

Fly-Buy Frisbees sells a wide variety of frisbees and uses a perpetual inventory system. On June 1, Fly- Buy Frisbees had five Fast Flying Frisbees on hand at a unit cost of $105. During June and...

Fibertek, Inc., computed a pretax financial income of $40,000 for the first year of its operations ended December 31, 2013. Included in financial income was $25,000 of nondeductible expenses, $22,000...

The Question pictures are clear when you zoom in Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two cameras are as follows (Ds = demand for the Sky...

3. What is meant when we say that people with a Protestant character exhibit manipulative behaviour?

An improvement in the exchange of information in negotiations.

1. Effort is important.