Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

000.000 on feed asset. That their book value at the end of 180.000 10 each yea 1 pts Dwbierto the stort I feed asset can

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
000.000 on feed asset. That their book value at the end of 180.000 10 each yea 1 pts Dwbierto the stort I feed asset can be sold for a $500,000 salvage value at the wente 20% the ending book value at the end of the project is demand rate of return is 10%, what is the after-tax salvage value Det the ATSV based on the information given. Question 17 Use Excel for this question: Using a 10% discount rate, what is the profitability index (PI) for the following cash flow? Time 0: $11,000 Time 1: $1,500 Time 2: $2.500 Time 3: $3.000 Time 4: $3,300 Time 5: $3,800 Time 6: $4,000 0 1.05 O 1.14 0 1.74 O 0.95 Use Excel for this question: Assume a company spends $2,000,000 on a fixed asset. That asset will be depreciated using the 7-year MACRS depreciation method. If the depreciation rates used are as follows, what is the ending book value at the end of year 77 Year 1: 14.2996 Year 2: 24.2996 Year 3: 17.49% Year 4: 12.49% Year 5: 8.93% Year 6: 8.92% Year 7: 8.93% $267,800 $125,000 $178,600 $89 200 Qud Use Excel for this question: Assume the following information is given to you for a project. Calculate the Cash Flow from Assets first and then the NPV of this project. Time horizon of the project: 4 years. Initial investment in the fixed asset: $2,000,000 The fixed asset has an 'after-tax salvage value' (ATSV) of $180,000. Operating cash flow: $500,000 in year 1, then increasing at 10% each year. Initial investment in NWC is $300,000. Required rate of return is 10%. O NPV = -$139,974 O NPV = +$126,934 O NPV = $153,972 O NPV = +$78,264 NPV = $78,264 1 D Question 16 a Use Excel for this question: If a fixed asset can be sold for a $500,000 salvage value at end of a project, the tax rate is 20%, the ending book value at the end of the project is $100,000, and the required rate of return is 10%, what is the after-tax salvage value (ATSV)? O ATSV = $420,000 O ATSV = $400,000 O ATSV = $450,000 There is no way to calculate the ATSV based on the information given. 000.000 on feed asset. That their book value at the end of 180.000 10 each yea 1 pts Dwbierto the stort I feed asset can be sold for a $500,000 salvage value at the wente 20% the ending book value at the end of the project is demand rate of return is 10%, what is the after-tax salvage value Det the ATSV based on the information given. Question 17 Use Excel for this question: Using a 10% discount rate, what is the profitability index (PI) for the following cash flow? Time 0: $11,000 Time 1: $1,500 Time 2: $2.500 Time 3: $3.000 Time 4: $3,300 Time 5: $3,800 Time 6: $4,000 0 1.05 O 1.14 0 1.74 O 0.95 Use Excel for this question: Assume a company spends $2,000,000 on a fixed asset. That asset will be depreciated using the 7-year MACRS depreciation method. If the depreciation rates used are as follows, what is the ending book value at the end of year 77 Year 1: 14.2996 Year 2: 24.2996 Year 3: 17.49% Year 4: 12.49% Year 5: 8.93% Year 6: 8.92% Year 7: 8.93% $267,800 $125,000 $178,600 $89 200 Qud Use Excel for this question: Assume the following information is given to you for a project. Calculate the Cash Flow from Assets first and then the NPV of this project. Time horizon of the project: 4 years. Initial investment in the fixed asset: $2,000,000 The fixed asset has an 'after-tax salvage value' (ATSV) of $180,000. Operating cash flow: $500,000 in year 1, then increasing at 10% each year. Initial investment in NWC is $300,000. Required rate of return is 10%. O NPV = -$139,974 O NPV = +$126,934 O NPV = $153,972 O NPV = +$78,264 NPV = $78,264 1 D Question 16 a Use Excel for this question: If a fixed asset can be sold for a $500,000 salvage value at end of a project, the tax rate is 20%, the ending book value at the end of the project is $100,000, and the required rate of return is 10%, what is the after-tax salvage value (ATSV)? O ATSV = $420,000 O ATSV = $400,000 O ATSV = $450,000 There is no way to calculate the ATSV based on the information given

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Unlock Financial Success With Self Storage Wealth Strategies

Authors: Ethan D. Costa

1st Edition

979-8866108695

More Books

Students also viewed these Finance questions