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. 👍
  2. 👎
  3. 👁
  4. ℹ️
  5. 🚩

Respond to this Question

First Name

Your Response

Similar Questions

  1. 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

  2. Calculus

    Suppose that the machinery in question costs $104000 and earns profit at a continuous rate of $69000 per year. Use an interest rate of 9% per year, compounded continuously. When is the present value of the profit equal to the cost

  3. 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

  4. 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. accounting

    Ron's Quik Shop bought machinery for $25,000 on January 1, 2010. Ron estimated the useful life to be 5 years with no residual value, and the straight-line method of depreciation will be used. On January 1, 2011, Ron decides that

  2. business

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

  3. 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

  4. accounting

    On January 1, 2006, Powell Company purchased a building and machinery that have the following useful lives, salvage value, and costs. Building, 25-year estimated useful life, $4,000,000 cost, $400,000 salvage value Machinery,

  1. microeconomics

    Explain how the following events would affect the demand for labor. A new education program administered by the company increases labor’s marginal product. The firm completes a new plant with a larger workspace and new

  2. Calculus 2 (math)

    A factory installs new machinery that will save 1250−38x dollars per year, where x is the number of years since installation. However, the cost of maintaining the new machinery is 81x dollars per year. Find the accumulated

  3. VERY URGENT, HELP!

    Consider a simple economy consisting of only four firms. Firm A, a mining enterprise, extracts iron ore. Firm B, a Steelmaker, produces steel sheets. Firm C, a carmaker, makes automobile while Firm D produces automobile tires. In

  4. Accounting

    In the context of determining fair value, the exit price refers to: A. The amount the firm would receive if it sold a given asset. B. Amount the firm would pay if it bought an asset of the same type and condition as the one being

View more similar questions or ask a new question.