Allen Air Lines must liquidate someequipment that is being replaced.The equipment originally cost $13.8million, of which 70% has beendepreciated. The used equipmentcan be sold today for $4.6 million,and its tax rate is 25%. What is theequipment's after-tax net salvagevalue? Enter your answer in dollars.For example, an answer of $1.2million should be entered as1,200,000.

Given information: Purchased value = $13.8 million or $13,800,000 Percentage Depreciated = 70% or…

Answered: Allen Air Lines must liquidate some…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $16.8 million, of which 75% has been depreciated. The used equipment can be sold today for $5.6 million, and its tax rate is 25%. What is the equipment's after-tax net salvage value? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar. $
Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $6 million, of which 80% has been depreciated. The used equipment can be sold today for $3 million and Allen faces a 25% tax rate. What is the equipment's after-tax net salvage value? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar. $
Allen Air Lines must liquidate some equipment that is being replaced. Theequipment originally cost $12 million, of which 75% has been depreciated.The used equipment can be sold today for $4 million, and its tax rate is40%. What is the equipment’s after-tax net salvage value?
Karsted Air Services is now in the final year of a project. Theequipment originally cost $29 million, of which 75% has been depreciated. Karsted can sellthe used equipment today for $8 million, and its tax rate is 35%. What is the equipment’safter-tax salvage value?
What is the equipment's after -tax salvage value for these accounting question?
Acefacto Inc., has asked for you to calculate the after-tax salvage value of an asset it plans on using in a construction project. The project will be depreciated straight line to a value of$670,000at the end of the project's and assets ten year life. Ace's marginal tax rate is32%. The firm will have to pay$8,047,675to buy the asset. You have estimated that they could sell the asset for$787,309to a Brazilian firm at the end of the project. Answer in dollars and cents.
Karsted Air Services is now in the final year of a project. The equipment originally cost $29 million, of which 85% has been depreciated. Karsted can sell the used equipment today for $7.25 million, and its tax rate is 30%. What is the equipment's after-tax salvage value? Write out your answer completely. For example, 13 million should be entered as 13,000,000. Round your answer to the nearest dollar. $
Karsted Air Services is now in the final year of a project. The equipment originally cost $27 million, of which 80% has been depreciated. Karsted can sell the used equipment today for $6.75 million, and its tax rate is 35%. What is the equipment's after-tax salvage value?
Garrison Corporation is considering the replacement of an old machine that is currently being used. The old machine has a book value of $28,000. If Garrison decides to replace the old machine, Picco Company has offered to purchase it for $60,000 on the replacement date. Garrison has a tax rate of 40%. What is the after-tax cash flow associated with the salvage ofthe old machine? A. $32,000B. $36,000C. $47,200D. $40,800
Acefacto Inc., has asked for you to calculate the after-tax salvage value of an asset it plans on using in a construction project. The project will be depreciated straight line to a value of $670,000 at the end of the project's and assets ten year life. Ace's marginal tax rate is 31%. The firm will have to pay $8,802,175 to buy the asset. You have estimated that they could sell the asset for $595,641 to a Brazilian firm at the end of the project. Answer in dollars and cents.
An asset that was originally purchased for $60,818 is being depreciated straight-line over its useful life. 83% of the asset has been depreciated. The asset can be sold for $35,191. If the company's tax rate is 34%, what is the after-tax salvage of this asset? Express your answer to the nearest whole number.
Acorporation purchased a machine for $60,000 five years ago. It had an estimated life of 10 years and an estimated salvage value of $9,000. The current BV of this machine is $34,500. If the current MV of the machine is$40,500 and the effective income tax rate is 29%, what is the after-tax investment value of the machine? Use the outsider viewpoint. Solve, (a) $28,755 (b) $40,500 (c) $38,760 (d) $37,455 (e) $36,759

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