Consider an asset that costs $1,156,294 and is depreciated straight-line to zero over its 10-year tax life. The asset is to be used in a 3-year project; at the end of the project, the asset can be sold for $214,463. If the relevant tax rate is 0.24, what is the aftertax cash flow from the sale of this asset (SVNOT)?

How do I create an After tax Cash Flow Analysis?  Use rounded answers for subsequent calculations

An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $5,200,000 and will be sold for $1,600,000 at the end of the project. If the tax rate is 23 percent, what is the aftertax salvage value of the asset? Refer to Table 10.7. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) What is the Aftertax salvage value?

An income-producing property is priced at $600,000 and is expected to generate the following after-tax.cash flows: Year 1: $42,000; Year 2: $44,000; Year 3: $45,000; Year 4: $50,000; and Year 5: $650,000. Calculate the NPV if the required rate of return is 15%. (If the calculated NPV is negative, report it as negative)

Vishnu

Please answer very fast then i ll upvote.  XYZ Limited is considering two projects. Each requires an immediate cash outlay: $10,000 for A, $9,000 for B. Project A has a life of four years, project B five years; neither will have any salvage value at the end of its life. For tax purposes, each would be depreciated by the straight-line method, project A at 30 percent, project B at 24 percent. The company’s tax rate is 40 percent, and its required rate of return after tax is 11 percent. Net cash flows before taxes have been projected as follows. Year 1 2 3 4 5 Project A 3200 3200 4000 4100   Project B 4000 4000 1900 1800 1800 a)calculate the net cash flows after tax for each project. (Assume that XYZ Limited has a substantial taxable income so that,where a project has a negative taxable income in a particular year, this will give rise to a tax saving by the firm.) b) Compute the payback for each investment. c) Compute the average rate of return for each investment. d) Compute…

Suppose you sell a fixed asset for $312,000 when its book value is $102,000. If your company’s marginal tax rate is 35 percent, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

A firm depreciated its assets with regard to an investment to $0.00 book value by the end of the project's 10 year life.   However, the firm expects to sale the assets for $500,000 in 10 years.  What is the PV of the after-tax salvage value if r = 10% per year, and the firm's tax rate is 32%?

Thomson Media is considering some new equipment whose data are shown below. The equipment has a 3-year tax life. Under the new tax law, the equipment is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. The equipment would have a positive pre-tax salvage value at the end of Year 3, when the project would be closed down. Also, additional net operating working capital (NOWC) would be required, but it would be recovered at the end of the project's life. Revenues and operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number. WACC 10.0% Equipment cost $70,000 Required net operating working capital (NOWC) $10,000 Annual sales revenues $61,000 Annual operating costs $30,000 Expected pre-tax salvage value $5,000 Tax rate 25.0%   a. $3,772     b. $5,319     c. $5,650…

Consider the following proposed capital investment in an engineering project and determine its (a) year-by-year ATCF, (b) after-tax AW, and (c) annual equivalent EVA.