21 21 24 215 27 212 Question 24 (2.5 points) Ausel's is considering a five-year project...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664c8eb37ff7c_298664c8eb2e947d.jpg)
Transcribed Image Text:
21 21 24 215 27 212 Question 24 (2.5 points) Ausel's is considering a five-year project that will require $757,680 for new fixed assets that will be depreciated straight-line to a zero book value over the five years. At the end of the project, the fixed assets can be sold for 10 percent of their original cost. The project is expected to generate annual sales of $1,075,000 and costs of $875,000. The tax rate is 35 percent and the required rate of return is 10 percent. What is the amount of the aftertax salvage value? $24,473 18 30 $56,858 33 >5 $37,536 $17,594 36 $49,249 21 21 24 215 27 212 Question 24 (2.5 points) Ausel's is considering a five-year project that will require $757,680 for new fixed assets that will be depreciated straight-line to a zero book value over the five years. At the end of the project, the fixed assets can be sold for 10 percent of their original cost. The project is expected to generate annual sales of $1,075,000 and costs of $875,000. The tax rate is 35 percent and the required rate of return is 10 percent. What is the amount of the aftertax salvage value? $24,473 18 30 $56,858 33 >5 $37,536 $17,594 36 $49,249
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Suppose a CAP policy was adopted that set allowances for a fixed number of miles driven by each car owner per year. Describe a plan for implementation and trading options.
-
Matthews & Bros. is a local landscape construction company. In analyzing financial performance, the cost accountant compares actual results with a flexible budget. The standard direct labor rates...
-
The piston C moves vertically between the two smooth walls. If the spring has stiffness k and is unstretched when = 0, determine the couple M that must be applied to AB to hold the mechanism in...
-
What are the trading techniques that are used by investors and speculators?
-
The following table details the tasks required for Indiana- based Frank Pianki Industries to manufacture a fully portable industrial vacuum cleaner. The times in the table are in minutes. Demand...
-
Identify the issue and appropriate point in the following circumstances The issue can be: A. disagreement with management about the adequacy of a disclosure in the financial report; B. disagreement...
-
The Atlantic Medical Clinic can purchase a new computer system that will save $7,000 annually in billing costs. The computer system will last for eight years and have no salvage value. Click here to...
-
According to the Central Limit Theorem, if X1 through XN are independent and identically distributed random variables with mean M and variance S, and the random variable X=(X1++XN)/N is their...
-
In my engagement, there are multiple projects with different project type (Project Type - Development. Application Operation, Infrastructure support). What is correct about the Operational Process...
-
A company want to find out if there is a linear relationship between indirect labor expense (ILE), in dollars, and direct labor hours (DLH). Data for direct labor hours and indirect labor expense for...
-
A friend of Mr. Richards recently won a law suit for $30 million. They have the ability to either take the payments over 10 years or settle today for cash of $25 million today. Mr. Richard is...
-
Harry has some buyers that he believes are ready to make an offer. He says to them, "Would you prefer to take possession on September 1 or October 1?" What kind of closing technique is Harry using?
-
You observe the following information regarding Companies X and Y: i. Company X has a higher expected return than company Y. ii. Company Y has a lower standard deviation of returns than Company Y....
-
Determine two different Hamilton circuits in each of the following graphs. A B F G
-
Utta Inc. allows each employee to earn 15 paid vacation days each year with full pay. Unused vacation time can be carried over to the next year. If not taken during the next year, unused vacation...
-
Bloy Company pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the following biweekly period. Bloy accrues salaries expense only at its December 31 year-end. Data...
-
Anne Taylor Company borrowed cash on August 1, 2020, and signed a \(\$ 33,300\) (face amount), one-year note payable, due on July 31, 2021. The accounting period of Anne Taylor ends December 31....
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App