Question: Your company is evaluating a new project that will require the purchase of an asset for $32,000 installed. The asset will be depreciated S/L for

Your company is evaluating a new project that will require the purchase of an asset for $32,000 installed. The asset will be depreciated S/L for 4 years to zero salvage. The economic life for the project is only 3 years after which the asset is expected to have a market value of $9,500. Assuming tax rate is 30%.

Calculate the after tax salvage for the asset at the end of 3 years.

9,950

8,000

9,050

7,545

8,900

ANSWER IN EXCEL

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!

Q:

Q1: Your company is evaluating a new project that will require the purchase of an asset for $22,000 installed. The asset will be depreciated S/L for 5 years to a zero salvage. Your company is...

Q:

Q1: Your company is evaluating a new project that will require the purchase of an asset for $22,000 installed. The asset will be depreciated S/L for 5 years to a zero salvage. Your company is...

Q:

Q1: Your company is evaluating a new project that will require the purchase of an asset for $22.000 installed. The asset will be depreciated S/L for 5 years to a zero salvage. Your company is...

Q:

Could someone please solve these on Excel and show me how? Example 1 Your company is evaluating a new project that will require the purchase of an asset for $22,000 installed. The asset will be...

Q:

4) Your company is evaluating a new project that will require the purchase of an asset for $25,000 installed. The asset will be depreciated S/L for 5 years to zero salvage. Your company is expecting...

Q:

3) Your company is evaluating a new project that will require the purchase of an asset for $22,000 installed. The asset will be depreciated S/L for 5 years to a zero salvage. Your company is...

Q:

4) Your company is evaluating a new project that will require the purchase of an asset for $25,000 installed. The asset will be depreciated S/L for 5 years to zero salvage. Your company is expecting...

Q:

Q2: Your company is evaluating a new project that will require the purchase of an asset for $25,000 installed. The asset will be depreciated S/L for 5 years to zero salvage. Your company is expecting...

Q:

Q1: Your company is evaluating a new project that will require the purchase of an asset for $22,000 installed. The asset will be depreciated S/L for 5 years to a zero salvage. Your company is...

Q:

Using Excell Q1: Your company is evaluating a new project that will require the purchase of an asset for $22,000 installed. The asset will be depreciated S/L for 5 years to a zero salvage. Your...

Q:

For each of the following studies, make a chart of the four possible correct and incorrect decisions, and explain what each would mean. Each chart should be laid out like Table 6-1, but put into the...

Q:

SmoothAir is a no-frills airline that services the Midwest. Its mission is to be the only short-haul, low-fare, high-frequency, point-to-point carrier in the Midwest. However, there are several large...

Q:

E2.18 The output y and input x of a device are related by y = x + 1.9x3. (a) Find the values of the output for steady-state operation at the two operating points xo = 1.2 and xo = 2.5. (b) Obtain a...

Q:

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".