Homework Answers
Net proceeds from the sale=Selling price-book value*(1-tax)
Net proceeds from the sale =(40000-20000)*(1-40%)
Net proceeds from the sale=12000
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A firm has a machine it can sell for $40,000. The book value of the machine is currently $20,000. If the firm sells the...
A firm has a machine it can sell for $40,000. The book value of the machine...
A firm has a machine it can sell for $40,000. The book value of the machine is currently $20,000. If the firm sells the machine, what are the net proceed from the sale? Assume that the tax rate is 40%. Round to the nearest penny. Do not include a dollar sign in your answer.
1- You are evaluating a capital project for equipment with a total installed cost of $750,000....
1- You are evaluating a capital project for equipment with a total installed cost of $750,000. The equipment has an estimated life of 30 years, with an expected salvage value at the end of the project of $50,000. The project will be depreciated via simplified straight-line depreciation method. In addition, a working capital investment of $5,000 is required. The project replaces an old piece of equipment which is currently in service and is fully depreciated, but has an expected after-tax...
a) A firm has an asset with a market value of $20,000 and a book value...
a) A firm has an asset with a market value of $20,000 and a book value of $30,000. If its marginal tax rate is 25%, what will the net proceeds from selling the asset be? b) A firm has an asset with a market value of $10,000 and a book value of $4,000. If its marginal tax rate is 25%, what will the net proceeds from selling the asset be?
a) A firm has an asset with a market value of $20,000 and a book value...
a) A firm has an asset with a market value of $20,000 and a book value of $30,000. If its marginal tax rate is 25%, what will the net proceeds from selling the asset be? b) A firm has an asset with a market value of $10,000 and a book value of $4,000. If its marginal tax rate is 25%, what will the net proceeds from selling the asset be?
please do not round until the end answer only 7,8,9 please 12 XYZ Company is considering...
please do not round until the end
answer only 7,8,9 please
12 XYZ Company is considering whether a project requiring the purchase of new equipment is worth investing. The cost of a new machine is $340,000 including shipping and installation. The project will increase annual revenues by $400,000 and annual costs by $100,000. The machine will be depreciated via straight-line depreciation for three years to a salvage value of $40,000. If the firm does this project, $30,000 in net working...
1- You are a part of a finance team in a firm, and you were asked...
1- You are a part of a finance team in a firm, and you were asked by your boss to estimate the annual cash flows of a project. You estimated that the annual sales and costs of this project is $150,000 and $25,000 respectively. In order to start the project, the firm needs to invest in $300,000 in new equipment including shipping and installation, and $30,000 in working capital. The life of this asset is 3 years, and the project...
Currently, Warren Industries can sell 15 – year, $1,000-par-value bonds paying annual interest at a 9%...
Currently, Warren Industries can sell 15 – year, $1,000-par-value bonds paying annual interest at a 9% coupon rate. Because current market rates for similar bonds are just under 9%, Warren can sell its bonds for $1,040 each; Warren will incur flotation costs of $25 per bond. The firm is the 21% tax bracket. a. The net proceeds from the sale of the bond, Upper N Subscript d is$ . (Round to the nearest dollar.) b. Using the bond's YTM, the...
1. Firm A just purchased a machine for $ 1,517,824 . If the salvage value of...
1. Firm A just purchased a machine for $ 1,517,824 . If the salvage value of this machine is $ 352,536 and if the estimated life of the machine is 14 years, what is the annual depreciation on this machine? (Round your answer to the nearest whole dollar and record without a dollar sign or a comma. For example, record $34,253.85431 as 34254). 2. Firm X purchased a piece of equipment exactly 9 years ago. The piece of equipment had...
CCC Company currently does not use any debt at all (it is an all-equity firm). The...
CCC Company currently does not use any debt at all (it is an all-equity firm). The firm has 1,000,000 shares selling for $40 per share. Its beta is 0.6, and the current risk-free rate is 2%. The expected market return for the coming year is 14%. CCC Company will sell $20,000,000 in corporate bonds with a $1,000 par value. The bonds have a yield to maturity of 10%. When the bonds are sold, the beta of the company will increase...
The Target Copy Company is contemplating the replacement of its old printing machine with a new...
The Target Copy Company is contemplating the replacement of its old printing machine with a new model costing $ 6 0,000. The old machine, which originally cost $40,000, has 6 years of expected life remaining and a current book value of $ 21 ,000 versus a current market value of $ 12 ,000. Target's corporate tax rate is 40 percent. If Target sells the old machine at market value, what is the initial after-tax outlay for the new printing machine?...
please do not round until the end
answer only 7,8,9 please
12 XYZ Company is considering whether a project requiring the purchase of new equipment is worth investing. The cost of a new machine is $340,000 including shipping and installation. The project will increase annual revenues by $400,000 and annual costs by $100,000. The machine will be depreciated via straight-line depreciation for three years to a salvage value of $40,000. If the firm does this project, $30,000 in net working...
CCC Company currently does not use any debt at all (it is an all-equity firm). The firm has 1,000,000 shares selling for $40 per share. Its beta is 0.6, and the current risk-free rate is 2%. The expected market return for the coming year is 14%. CCC Company will sell $20,000,000 in corporate bonds with a $1,000 par value. The bonds have a yield to maturity of 10%. When the bonds are sold, the beta of the company will increase...
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