Homework Help is Here – Start Your Trial Now!
Business
Accounting
Question No. 14. (Financial Accounting): Faylon Enterprises sells a fixed asset for $142,500 when its book value is $168,000. If the company's marginal tax rate is 38%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax free cash flow of this sale)?

Question No. 14. (Financial Accounting): Faylon Enterprises sells a fixed asset for $142,500 when its book value is $168,000. If the company's marginal tax rate is 38%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax free cash flow of this sale)?

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...
See similar textbooks
icon
Related questions
Question
100%

Question No. 14

Question No. 14. (Financial Accounting): Faylon Enterprises sells a fixed asset for $142,500 when its book value is $168,000. If the company's marginal tax rate is 38%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax free cash flow of this sale)?
Transcribed Image Text:Question No. 14. (Financial Accounting): Faylon Enterprises sells a fixed asset for $142,500 when its book value is $168,000. If the company's marginal tax rate is 38%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax free cash flow of this sale)?
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer