Question: please help asap! with complete answer! (After-tax salvage value) An asset used in a two-year project falls in the three-year MACRS class for tax purpose:

please help asap! with complete answer! please help asap! with complete answer! (After-tax salvage value) An asset used

(After-tax salvage value) An asset used in a two-year project falls in the three-year MACRS class for tax purpose: 0.3333,0.4444,0.1482,0.0741. The asset has an acquisition cost of $31,000,000 and will be sold for $3,000,000 at the end of the project. If the tax rate is 21%, the after-tax salvage value of the asset is Question 7 2 pts Aunt Sally's Sauces Inc., is considering expansion into a new line of allnatural, cholesterol-free, sodium-free, fat-free, low-calorie tomato sauces. Sally has paid $7,000 for a marketing study which indicates that the new product line would have sales of $900,000 per year for the next six years. Manufacturing plant and equipment would cost $600,000 and will be depreciated using the following annual depreciation rates: 0.2, 0.32, 0.1920,0.1152,0.1152,0.0576. The fixed assets will have no market value at the end of six years. Annual fixed costs are projected at $80,000 and variable costs are projected at 26% of sales. Net operating working capital requirements are $75,000 for the six-year life of the project; the outlay for working capital will be recovered at the end of six years. Aunt Sally's tax rate is 25% and the firm requires a 8% return. The projected Free Cash Flow (FCF) in the first year is $

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