Nine Point Industries has $39,000,000 in equipment that has a 15 year class life. The equipment is 3 years old. The firm is selling the equipment for $13,000,000. The firm uses simplified straight line depreciation (zero salvage value) and has a marginal tax rate of 34%. What is the terminal cash flow? Assume no working capital. Set your calculator to 4 decimal places and round to a whole number at the end. For example, if your answer is 1,000 enter it as 1000. DO NOT ENTER THE DOLLAR SIGN.
Nine Point Industries has $39,000,000 in equipment that has a 15 year class life. The equipment is 3 years old. The firm is selling the equipment for $13,000,000. The firm uses simplified straight line depreciation (zero salvage value) and has a marginal tax rate of 34%. What is the terminal cash flow? Assume no working capital. Set your calculator to 4 decimal places and round to a whole number at the end. For example, if your answer is 1,000 enter it as 1000. DO NOT ENTER THE DOLLAR SIGN.
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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Transcribed Image Text:Nine Point Industries has $39.000,000 in equipment that has a 15 year class life. The equipment is 3 years old. The firm
is selling the equipment for $13,000,000. The firm uses simplified straight line depreciation (zero salvage value) and has
a marginal tax rate of 34%. What is the terminal cash flow? Assume no working capital. Set your calculator to 4 decimal
places and round to a whole number at the end. For example, if your answer is 1,000 enter it as 1000. DO NOT ENTER
THE DOLLAR SIGN.
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