Consider an asset that costs $655,000 and is depreciated straight-line to zero over its 8- year tax life. The asset is to be used in a 6-year project; at the end of the project, the asset can be sold for $129,000. If the relevant tax rate is 24 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Q: Define Exploration costs.

A: Cost:   It refers to the economic value incurred by the business to manufacture a product or render…

Q: Is the project viable or not? Suggest reasons

A: The viability of a project is examined in a feasibility study to ascertain the likelihood of…

Q: What is physical life of project?

A: Physical life of a project is the duration of time in which the project has been fully used and…

Q: What are the sources of risk associated with project development?

A: Variations in returns of an investment from its expected returns are called risk. The risk of an…

Q: Outline the measures used to describe possible loss accurately?

A: The success of a business depends on how accurately they predict future profit or loss arriving…

Q: What are the benefits and costs of renovation?

A: Introduction: Renovation is the improvement process in which upgrades and repair of the property are…

Q: What are the benefits and corresponding risks of Financial Investment?

A: Financial Investments are investments that are made with the expectation to receive future financial…

Q: state the limitations of the payback pe

A: Answer : The payback period is the quantity of time needed for cash inflows generated by a project…

Q: What is the initial cost of setting up the "stop-loss"  strategy?

A: The Stop-loss strategy is very useful which helps the investors to protect in the market, as the…

Q: The MARR used for a project’s acceptance or rejection is set relative to what cost?

A: MARR is a discount return which is the lowest rate of return that must be accepted in the project.

Q: What disclosures are required for remote likelihood of losses?

A: Likelihood of losses means chance of occuring loss in some future events of the business. Likelihood…

Q: Explain the Incremental Cost of Refinancing?

A: Answer: If the interest rate on the higher sum of borrowing is greater, then the average cost of…

Q: What factors verify that the project is marginally acceptable?

A: Capital budgeting decisions are generally taken for long-term purposes that are irrevocable.…

Q: What is downsizing?

A: Downsizing: The process of downsizing is also termed as rightsizing is an approach to integrate and…

Q: What type of Risks are exists in the conversion cycle?

A: Cash conversion cycle (CCC) CCC is a tool for tracking the time the company spends to get the cash…

Q: What are MACRS recovery period?

A:

Q: In Benefit/cost ratio analysis, if the salvage value is used to recover the first cost, it is being…

A: Salvage value is the book value of an asset after all the depreciation is completed.

Q: Why was the disposal value used for only replace and not upgrading?

A: Disposal Value will be used only in case of replacement because current machine will be sold if we…

Q: Describe the methods of determining the Project Risk?

A: Project risk is an uncertain event or circumstance that affects at any rate one objective of a task,…

Q: How would you incorporate salvage value into the excel

A: The NPV of a project refers to its profitability measured by discounting all cash flows to the…

Q: at is regular underw

A: Regular Underwriting is the method through that a private or establishment takes on…

Q: What are the primary considerations that should be made when refinancing?

A: Individual consider refinancing of the loan because of the following reasons: Interest rates have…

Q: How is life-cycle-cost analysis useful?

A: Life Cycle Costing (LCC) is a process of accounting which is used by the owner or management of an…

Q: How will the Net present Value  of the pesticide ban be calculated

A: Net Present value is Present value of Cash Inflows - Present value of Cash outflows

Q: How do the passive losses rules and the at risk rules work in conjunction to limit losses?

A: Passive losses: These are the losses that take place when expenses exceed the income in the passive…

Q: What is important for a MACRS to consider at the time of disposal?

A: MACRS stands for Modified Accelerated Cost Recovery System. These are the regulations of…

Q: What is commercial risk?

A: In financial terms, risk is defined as the possibility that the real profits from an outcome or…

Q: When does a project deny the merit consideration?

A: Project is assessed on the basis of various important considerations such as profitability, social…