ZuoTi.Pro
Question

Question 7 O out of 2 points If the tax rate is 40%, what are the net proceeds from selling an asset for $90,000? Assume the

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Solution: 7) Given, Book value = $ 20,000 Selling for = $90,000 TGX - 40% tax on gain Net proceeds Sale proceeds こ (90,000 -Year CF CCF o - 50 - 50 30 -20 - 2 14 -6 3 10 4 4 14 18 period - last year(-) ve cor + pay back period Last (-)ve ccf (f in i

0 0
Add a comment
Know the answer?
Add Answer to:
Question 7 O out of 2 points If the tax rate is 40%, what are the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • If the tax rate is 40%, what are the net proceeds from selling an asset for...

    If the tax rate is 40%, what are the net proceeds from selling an asset for $90,000? Assume the asset originally had a book value of $40,000.

  • QUESTION 4 Assume a firm has a cost of capital of 9% and the following cash...

    QUESTION 4 Assume a firm has a cost of capital of 9% and the following cash flows. Compute the NPV of the project. Reminder, keep the negative if you answer comes negative since that indicates the project is unprofitable. Year Cash Flow -60 30 20 50 10 QUESTION 5 If the tax rate is 40%, what are the net proceeds from selling an asset for $90,000? Assume the asset originally had a book value of $30,000.

  • QUESTION 6 An asset was purchased for $200,000 originally. Each year for the past 8 year,...

    QUESTION 6 An asset was purchased for $200,000 originally. Each year for the past 8 year, depreciation has been recorded which results in the asset having a current book value of $120,000. Now your firm is selling the asset for $145,000. What will be the total tax burden (or tax credit) caused by this sale? If it is a tax burden, enter the number as a positive number. If it is a tax credit, enter the number as a negative...

  • QUESTION 2 Partaily correct 2.00 points out of 8.00P Flag question Computing Depreciation, Net Book Value,...

    QUESTION 2 Partaily correct 2.00 points out of 8.00P Flag question Computing Depreciation, Net Book Value, and Gain or Loss on Asset Sale Lynch Company owns and operates a delivery van that originally cost $51,200. Lynch has recorded straight-line depreciation on the van for four years, calculated assuming a $5,000 expected salvage value at the end of its estimated six-year useful life. Depreciation was last recorded at the end of the fourth year, at which time Lynch disposes of this...

  • 2. A firm currently has $10 million in debt, $40 million in cash, and 10 million...

    2. A firm currently has $10 million in debt, $40 million in cash, and 10 million shares outstanding. If the present value of the firm's free cash flows is $120 million, what should be its share price? 4. If the tax rate is 40%, what are the net proceeds from selling an asset for $90,000? Assume the asset originally had a book value of $20,000. 7. ReMATE Incorporate expects free cash flow earnings of $6 million next year. Since the...

  • Question 11 Tries remaining: 2 Points out of 7.70 PFlag question S Tax $40 $30 $20...

    Question 11 Tries remaining: 2 Points out of 7.70 PFlag question S Tax $40 $30 $20 $10 10 20 30 40 Calculate the Tax Revenue that this per unit tax would generate. (Do not include a $ sign in your response. Round to the nearest two decimal places if Answer: Check

  • o Relum (TR the book Mood Internal Rate of Return (MIR) ) Click here to read...

    o Relum (TR the book Mood Internal Rate of Return (MIR) ) Click here to read the book: Payback Period CAPITAL BUDGETING CRITERIA Afirm with a 14%. WACC is evaluating two projects for this year's capital budget hows, including Project M Project N 530,000 $10,000 $10,000 $10,000 $10,000 $10,000 -390,000 $28,000 $28,000 $28,000 $28,000 $28,000 3. Calculate NPV for each project. Round your answers to the nearest cent. De Project M $ Project NS tround your intermediate actions Calculate TR...

  • Question 12 Tries remaining: 2 Points out of 7.70 S Tax $40 P Flag question $30...

    Question 12 Tries remaining: 2 Points out of 7.70 S Tax $40 P Flag question $30 $10 2 4 6 8 Calculate the Deadweight Loss that this per unit tax would generate. (Do not include a $ sign in your response. Round to the nearest two decimal places if necessary.) Answer

  • Check my work Answer each independent question, (a) through (e), below. 0.25 points eBook a. Project...

    Check my work Answer each independent question, (a) through (e), below. 0.25 points eBook a. Project A costs $4,000 and will generate annual after-tax net cash inflows of $1,700 for 5 years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) b. Project B costs $4,000 and will generate after-tax cash inflows of $500 in year 1, $1,100 in year 2, $2,000...

  • a. Project A costs $5,500 and will generate annual after-tax net cash inflows of $2,600 for...

    a. Project A costs $5,500 and will generate annual after-tax net cash inflows of $2,600 for 5 years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) b. Project B costs $5,500 and will generate after-tax cash inflows of $660 in year 1, $1,400 in year 2, $2,400 in year 3, $2,700 in year 4, and $2,400 in year 5. What is...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT