Question: Suppose you sell a fixed asset for $126,000 when it's book value is $157,000. If your company's marginal tax rate is 21%, what will be

Suppose you sell a fixed asset for $126,000 when it's book value is $157,000. If your company's marginal tax rate is 21%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

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!

Prevosti Farms and Sugarhouse pays its employees according to their job classification. The following employees make up Sugarhouse's staff: Employee Number Name and Address Payroll information...

Suppose you sell a fixed asset for $119,000 when it's book value is $143,000. If your company's marginal tax rate is 21%, what will be the effect on cash flows of this sale (i.e., what will be the...

1- Suppose you sell a fixed asset for $90,000 when its book value is $95,000. If your company's marginal tax rate is 40 percent, what will be the effect on cash flows of this sale (i.e., what will be...

Suppose you sell a fixed asset for $109,000 when its book value is $129,000. If your company's marginal tax rate is 21 percent, what will be the effect on cash flows of this sale (.e., what will be...

2 pts OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 5,000 bonds. Suppose the common shares are selling for $18 per share, the...

1. Suppose you sell a fixed asset for $77,000 when it's book value is $84,000. If your company's marginal tax rate is 33%, what will be the effect on cash flows of this sale (i.e., what will be the...

Suppose you sell a fixed asset for $80,000 when it's book value is $90,000. If your company's marginal tax rate is 21%, what will be the effect on cash flows of this sale (i.e., what will be the...

dont understand, please help! Thank you! Question 25 (Mandatory) (1 point) One way to account for flotation costs of raising capital is to: 0 adjust the project's initial cash flow so that it will...

Check my work 11 Problem 12-1 After-Tax Cash Flow from Sale of Assets (LG12-3) Suppose you sell a fixed asset for $115,000 when its book value is $135,000. If your company's marginal tax rate is 21...

Suppose you sell a fixed asset for $112,000 when its book value is $100,000. If your company's marginal tax rate is 25 percent, what will be the effect on the cash flows of this sale (i.e., what will...

Suppose you sell a fixed asset for $124,000 when its book value is $144,000. If your company's marginal tax rate is 21 percent, what will be the effect on cash flows of this sale (i.e., what will be...

4 6.66 points eBook Print References Label the abdominal contents using the hints if provided. Liver Stoch Round ligament of liver Gallbladder Falciform ligament Greater omentum Lesser omentum Liver...

Customer to the Lotus Tea Importer Company places an order with a sales representative by phone or fax. The sales department employee then transcribes the customer order into a standard sales order...

Which of the following is an example of a cost object? Employee salaries Total revenue of a company The company's overall profit The cost of attending schoot for a semester

What do you think most managers would do in this situation?

1. What are the ethical issues in this case? 2. What do you think most managers would do in this situation?

Suppose that we have a sample space S = {E1, E2, E3, E4 =, E5, E6, E7}, where E1, E2, . . . , E7 denote the sample points. The following probability assignments apply: P(E1) = .05, P(E2) = .20, P(E3)...

According to the Ameriprise Financial Money Across Generations study, 9 out of 10 parents with adult children ages 20 to 35 have helped their adult children with some type of financial assistance...

In Example 4.9, 83.25% of the oil in soybeans is leached by benzene using a single equilibrium stage. Calculate the percent extraction of oil if: (a) Two countercurrent equilibrium stages are used to...

the more leaders are admired and respected, the more members ( blank ) their behaviour. A . resent B . Admire C . Imitate D . endorse

Describe the Ethic of Caring. Why was it important in this situation?

What are the human resource responsibilities of a board of directors?

What conflicts of interest had to be resolved?