Suppose you sell a fixed asset for $118,000 when its book value is $138,000. If your company's marginal tax rate is 39 percent, what will be the effect on the cash flows of this sale?
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- K You have a depreciation expense of $546,000 and a tax rate of 22%. What is your depreciation tax shield? The depreciation tax shield will be $ (Round to the nearest dollar.)Suppose you sell a fixed asset for $99,000 when its book value is $75,000. If your company's marginal tax rate is 39 percent, what is the gain or loss on the sale of the asset? Multiple Choice ___ $24,000 ___ $11,600 ___ $14,640 ___ $10,300Answer this financial accounting question
- An income-producing property is priced at $600,000 and is expected to generate the following after-tax.cash flows: Year 1: $42,000; Year 2: $44,000; Year 3: $45,000; Year 4: $50,000; and Year 5: $650,000. Calculate the NPV if the required rate of return is 15%. (If the calculated NPV is negative, report it as negative)You have a depreciation expense of $478,000 and a tax rate of 35%. What is your depreciation tax shield? The depreciation tax shield will be $ (Round to the nearest dollar.)With a 28% marginal tax rate, would a tax free yield of 7% or taxable yeild of 9.5% give you a better return on your savings? why?
- Assume that in 2020, a Liberty Seated half dollar issued in 1890 was sold for $197,000. What was the rate of return on this investment?Suppose that you are attempting to value an income-producing property using the direct capitalization approach. Using data from comparable properties, you have determined the overall capitalization rate to be 7.0%, a reasonable discount rate of 9%, and an exit cap rate of 12%. If the projected first-year net operating income (NOI) for the subject property is $135,500, If the projected second-year net operating income (NOI) for the subject property is $145,500, and the projected final- year total cash flow for the subject property is $1,155,500 what is the indicated value of the subject using direct capitalization? Enter the answer below as an absolute value (a positive number), no dollar sign. Rounding to the nearest whole number (no decimal places) is ok. Your Answer: AnswerAssuming a 1-year, money market account investment at 4.97 percent (APY), a 2.96% inflation rate, a 28 percent marginal tax bracket, and a constant $50,000 balance, calculate the after-tax rate of return, the real return, and the total monetary return. What are the implications of this result for cash management decisions? Assuming a 1-year, money market account investment at 4.97 percent (APY), a 28 percent marginal tax bracket, and a constant $50,000 balance the after-tax rate of return is %. (Round to two decimal places.)
- Suppose an investor is interested in purchasing the following income producing property at a current market price of $ 1,490,000. The prospective buyer has estimated the expected cash flows over the next five years to be as follows: Year 1 = $88,000, Year 2 = $90,662, Year 3 = $91,923, Year 4 = $95,778, Year 5 = $97,000. Assuming that the required rate of return is 15% and the estimated proceeds from selling the property at the end of year five is $1,860,000, what is the NPV of the project? What is the IRR of the project?You are offered a chance to buy an asset for $7,250 that is expected to produce cash flows of $750 at the end of Year 1, $1,000 at the end of Year 2, $850 at the end of Year 3, and $6,250 at the end of Year 4. What rate of return would you earn if you bought this asset? a. 5.19% b. 5.46% Ⓒc. 6.05% d. 5.75% e. 4.93%6. Consider the following cash flow series, Aj=1,500 A2=3,000 A3=4,500 A4-6,000 As=7,500 A6=9,000 A=10,500 Ag=12,000 A9=13,500 A10=15,000 and Au=16,500 a. Determine the present worth and the future worth based on an interest rate of 15%. b. Determine the equivalent annual cost for the given cash flow series.