{"id":35666,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/spea-361-consider-an-asset-that-costs-516293-and-is-depreciated-straight-line"},"modified":"2017-08-16T06:34:15","modified_gmt":"2017-08-16T06:34:15","slug":"spea-361-consider-an-asset-that-costs-516293-and-is-depreciated-straight-line","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/spea-361-consider-an-asset-that-costs-516293-and-is-depreciated-straight-line\/","title":{"rendered":"SPEA 361 \u2013 Consider an asset that costs $516293 and is depreciated straight-line"},"content":{"rendered":"<div class=\"the_content_wrapper\">\n<p>SPEA 361 \u2013 Consider an asset that costs $516293 and is depreciated straight-line<br \/> Consider an asset that costs $516293 and is depreciated straight-line to zero over its seven-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $167419. If the relevant tax rate is 37 percent, what is the aftertax cash flow from the sale of this asset?<\/p>\n<p>Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.5 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1923808 in annual sales, with costs of $717177. If the tax rate is 33 percent, what is the OCF for this project?<\/p>\n<p>Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $3.13 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2181349 in annual sales, with costs of $816704. If the tax rate is 34 percent and the required return on the project is 9 percent, what is the project\u2019s NPV?<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>SPEA 361 \u2013 Consider an asset that costs $516293 and is depreciated straight-line Consider an asset that costs $516293 and is depreciated straight-line to zero over its seven-year tax life. The asset is to be used in a five-year project; <a href=\"https:\/\/www.benedictsol.com\/blogs\/spea-361-consider-an-asset-that-costs-516293-and-is-depreciated-straight-line\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-35666","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/35666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=35666"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/35666\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=35666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=35666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=35666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}