Answer: $618,096
Explanation:
Accumulated depreciation after 5 years = 20% + 32% + 19.2% + 11.52
= 82.72%
Value after 4 years = 3,300,000 * ( 1 - 82.72%)
= $570,240
Gain on sale = Salvage value - Net book value
= 650,000 - 570,240
= $79,760
Aftertax salvage value = 650,000 - (Gain on sale * tax)
= 650,000 - (79,760 * 40%)
= $618,096
well if im right it should be 20$.
Answer:
$247,000
Explanation:
Calculation to determine the total of Hunter Products' liabilities at the end of May
Total of Hunter Products' liabilities=(400,000-150,000) - 60,000 + 63,000
Total of Hunter Products' liabilities=250,000 - 60,000 + 63,000
Total of Hunter Products' liabilities=$247,000
Therefore the total of Hunter Products' liabilities at the end of May will be $247,000
Answer:
They should invest $5,119,047.619 today.
Explanation:
The trust fund will pay a fixed amount forever thus it is a perpetuity. The value of perpetuity or Price of perpetuity is the amount that the perpetuity is worth in today's terms based on the cash flows it will generate in future.
The formula for the value or price of perpetuity is,
P0 or V = Cash Flow / r
Thus,
P0 or V = 215000 / 0.04 = $5,119,047.619
