Quick Computing installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Quick Computing installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of that older equipment will become unnecessary when the company goes into production of its new product. The obsolete equipment, which originally cost $37.00 million, has been depreciated straight-line over an assumed tax life of 5 years, but it can be sold now for $17.40 million. The firm's tax rate is 30%. What is the after-tax cash flow from the sale of the equipment? (Enter your answer in millions rounded to 1 decimal place.) After-tax cash flow million Quick Computing installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of that older equipment will become unnecessary when the company goes into production of its new product. The obsolete equipment, which originally cost $37.00 million, has been depreciated straight-line over an assumed tax life of 5 years, but it can be sold now for $17.40 million. The firm's tax rate is 30%. What is the after-tax cash flow from the sale of the equipment? (Enter your answer in millions rounded to 1 decimal place.) After-tax cash flow million
Expert Answer:
Answer rating: 100% (QA)
Answer To calculate the aftertax cash flow from the sale of the equipmen... View the full answer
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date:
Students also viewed these finance questions
-
Quick Computing installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of that older equipment will become unnecessary when the company goes into production of...
-
Define/describe the following organizations and summarize how they differ from a social enterprise: i) Non-Profit organization iii) Social Venture iii) Charity organization iv) Benefit Company v)...
-
As we continue our discussions regarding revenue's associated with public sector, this will help reinforce some of the ideas regarding taxes on goods and services. Through the next week, save your...
-
A company manufacturing hockey bags registered trademarks for $1,000 cash for its revolutionary RackDri hockey bags on June 1, 2015. On December 1, 2015, it paid $10,000 cash for legal costs to...
-
Wilton sells softball equipment. On November 14, they shipped $3500 worth of softball uniforms to Paola Middle School, terms 1/10, n/30. On November 21, they received an order from Douglas High...
-
Plaintiffs purchased stock warrants (rights to purchase) for blocks of Osborne Computer Corp., the manufacturer of the first mass-market portable personal computer. Because of inability to produce a...
-
1. Describe Samsung as a conglomerate. What type of diversification does Samsung pursue? 0Identify possible factors such as core competencies, economies of scale, and economies of scope that might...
-
2. (24 Points) Find out the number of real roots of the cubic equation 23-6x+1=0. Justify your answer.
-
Your company is considering investing in its own transport fleet. The present position is that carriage is contracted to an outside organization. The life of the transport fleet would be five years,...
-
Some of the finest basketball players ___ James, Durant, Anthony, Pierce ___ play the small-forward position. (quotation marks) ; ; (semicolons) : , (colon, then comma) (dashes)
-
A PPN is issued with a NAV of $10.00 and is redeemed at maturity at $15.00 five years later. Calculate the amount of tax per unit that an investor in a 40% marginal tax bracket will owe at maturity.?
-
what is digital marketing and how does it impact an organization's success?
-
Squash Delight Inc. has the following balance sheet: Cash Accounts receivable Fixed assets Total assets Assets Liabilities Accounts payable Notes payable Common stock (100,000 shares @ $2 par)...
-
Determine the formula that matches each Venn Diagram. (a) (b) U 5. Draw and shade the Venn diagram that corresponds to each of: (a) An (BUC) (b) AU (BOC) B
-
brief essay How are topic sentences different from support sentences? Name tld rhree techniques for building paragraph coherence.
-
Two bonds are available for purchase in the financial markets. The first bond is a 2-year, $1,000 bond that pays an annual coupon of 10 percent. The second bond is a 2-year, $1,000, zero-coupon bond....
-
(a) Water flows through the nozzle of a garden hose. Find an expression for m in terms of line pressure P 1 , ambient pressure P 2 , inside hose diameter D 1 , and nozzle outlet diameter D 2 . Assume...
-
Discuss the importance of using ecologically correct packaging materials and the major impact of packaging policy. Is eco-labeling necessary? Why?
-
There are many who believe that whatever is legal is ethical. Do you agree with this belief as it might apply to the international marketer? Explain your position and give examples of behaviour in...
-
How would you respond to a person making the following statement: 'as a general rule, the export market manager has few sources of information available for use in market selection?
-
Suppose you want to create a price index for the price of a personal pizza across several Canadian university campuses, as of March 1 , 201 6. The data are as follows: a. Using Calgary as the "base...
-
Fill in the blanks to make the following statements correct. a. Ceteris paribus, the price of a product and the quantity demanded are related ________ b. Ceteris paribus, the price of a product and...
-
The following questions will provide practice working with simple linear functions. All questions refer to a coordinate graph with the variable \(X\) on the horizontal axis and the variable \(Y\) on...
Study smarter with the SolutionInn App