Finance

Your firm purchased machinery for $10 million. The machinery falls into asset class 38, which has a CCA rate of 25 percent. The project will end after 5 years. If the equipment can be sold for $4 million at the completion of the project and your firm's tax rate is 35 percent, what is the after-tax cash flow from the sale of the machinery? Assume that the firm has no other assets in Class 38 and the asset class will be terminated upon the sale of the machinery.

answer: $3568994.14

please show detailed solution

  1. 👍 0
  2. 👎 0
  3. 👁 230

Respond to this Question

First Name

Your Response

Similar Questions

  1. science

    Which option describes nonmetals? They are good for making into wires. They conduct heat efficiently. They are used to make machinery. They conduct electricity poorly. D?

  2. finance (total asset turnover)

    Total asset turnover indicates the firm's? A. liquidity B. debt position C. ability to use its assets to generate sales D. profitability I read about a asset turnover ratio in the text book. this ratio by itself is useless but

  3. business

    which of the examples is not a resource land firms labor machinery or human capital

  4. finance (current asset)

    An item which may be converted to cash within one year or one operating cycle of the firm is classidied as a.... A. current liability B. long-term asset C. current asset D. long-term liability I like C current asset-the quest is

  1. Finance

    Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.38 million. The fixed asset falls into the three-year MACRS class (MACRS schedule). The project is estimated

  2. accountancy

    on july 1,2011 ,Ashok ltd. purchased a machine for Rs. 108000 and spent Rs . 12000 on its installation .At the time of purchase it is estimated that its working life is 12 years and after 12 years its salvage value will be

  3. Finance

    Suppose a new company decides to raise a total of $200 million, with $100 million as common equity and $100 million as long-term debt. The debt can be mortgage bonds or debentures, but by an iron-clad provision in its charter, the

  4. college finance

    An unlevered firm with a market value of $1 million has 50,000 shares outstanding. The firm restructures itself by issuing 200 new par bonds with face value of $1,000 and an 8% coupon. The firm uses the proceeds to repurchase

  1. income tax

    On May 26, 2007, Jamal purchased machinery for $30,000 to be used in his business. He did not elect to expense the equipment under ยง179 or the bonus. On October 10, 2011, he sells the machinery to a scrap metal dealer. What is

  2. Business Studies

    Discuss the suitability of the various sources of finance a large business might use when replacing old machinery.

  3. college

    What type of goods is most often produced in a traditional economic system? a-heavy industrial machinery b-textiles c-agricultural products

  4. math

    16. Ruth bought a piece of farm machinery valued at $50,000. Over a period of 10 years, the machinery lost value at a constant rate. The graph below models this loss of value. Which statement most closely matches this

You can view more similar questions or ask a new question.