1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aev [14]
3 years ago
13

"Eastern Corporation has $21,000,000 in equipment that has a 15 year class life. The equipment is 8 years old. Eastern is sellin

g the equipment for $10,000,000. Eastern 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."
Business
1 answer:
Alex787 [66]3 years ago
3 0

Answer:

terminal cash flow $932,000

Explanation:

21,000,000/15 = 1,400,000

1,400,000 x 8 = 11,200,000

<u>Net Book Value:</u> 21,000,000 - 11,200,000 = 9,800,000

Sale                                                                10,000,000

Gain                                                                   200,000

<u>We must pay taxes for the gain:</u>

200,000 x .34 = 68,000

<u>terminal cash flow:</u> proceeds - taxes = 10,000,000 - 68,000 = 932,000

You might be interested in
After numerous campus interviews, Alex Sanchi, a student at BC, received two office interview invitations from the Orlando offic
JulsSmile [24]

Answer:

She should have been honest and transparent about the interviews to both potential employers.

Explanation:

A good working relationship is based on trust, honesty and ethical behavior from both the potential employee and employer. Alex, being dishonest at the beginning of a potential relationship, may ruin the chances of having that relationship. If either of her potential employers found out, she would be labelled as unethical and may face legal action for using funds from one firm to attend an interview of another. The honest action would have been to set different days (consecutive) and informed both that she would be there for both days and for what. This would have benefited her as well as it would have allowed her some time to prepare for the next interview.

A good member of any team is honest, trustworthy and reliable, among other traits.

4 0
4 years ago
Read 2 more answers
Pat, a manager, is assessing possible alternatives for the solution of a problem. Pat performs a cost-benefit analysis of severa
galina1969 [7]
Economic feasibility
5 0
3 years ago
Wells Fargo &amp; Company, headquartered in San Francisco, is one of the nation’s largest financial institutions. Suppose it rep
andreev551 [17]

Answer:

<u>EQUITY AND LIABILITIES</u>

<u>EQUITY</u>

Retained earnings                    $ 41,563

Preferred stock                          $ 8,485

Common stock - Issued             $ 8,743

Treasury stock                           $ 2,450

Share Premium                        $ 52,878

Total Equity                                $114,119

Explanation:

The the stockholders’ equity section of the balance sheet shows the amount of capital invested by the shareholders in the business as well as the reserves that have been allocated to them.

<u />

8 0
3 years ago
"All three levels are required to run an organization or a business smoothy"Justify the statement.​
Reika [66]

Answer:

"All three levels are required to run an organization or a business " according to my point of view it is true without anyone levels (sector) business or organization not imagine to run

5 0
3 years ago
Which sentence is an example of an I-statement?
Alborosie

an example of an I statement would be d: I feel hurt when you ignore me at meetings; it makes me think that you don’t value my opinion.

8 0
3 years ago
Read 2 more answers
Other questions:
  • Meatpackers, Inc., enters into a contract with Nevada Ranch for the delivery of a certain number of beef cattle on a set schedul
    5·2 answers
  • You are interested in hiring an ergonomics consultant to evaluate your employees' desks and chairs. You research four consultant
    8·1 answer
  • E-Eyes just issued some new preferred stock. The issue will pay an annual dividend of $20 in perpetuity, beginning 20 years from
    7·1 answer
  • If closing costs of $1,400 are associated with the refinance of reduce the monthly payment fro m $980 to $870 refinance, it woul
    10·1 answer
  • Bird Brain Co. reported net income of $45,000 for the year ended December 31, 2016. January 1 balances in accounts receivable an
    7·1 answer
  • Yoda signs a covenant not to compete with his employer, Penultimate Sales Corporation. A court decides that the covenant is over
    10·1 answer
  • ..............................................................................
    13·1 answer
  • At the annual meeting of the board of directors of LabZaws Co., James Wilson, the CEO of the company, was directed to focus prim
    7·1 answer
  • ______ is the result of low-cost producers focusing all their efforts on producing a single good or service. (Use one word for t
    6·1 answer
  • you are a speculator who sells a call option on swiss francs for a premium of $.06, with an exercise price of $.64. the option w
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!