Quick Computing installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of that older equipment will become unnecessary when the company goes into production of its new product. The obsolete equipment, which originally cost $40 million, has been depreciated straight-line over an assumed tax life of 5 years, but it can be sold now for $18 million. The firm’s tax rate is 35%. What is the after-tax cash flow from the sale of the equipment?

Answers

Answer 1

The company's after-tax cash flow is a measure of the company's cash

generation ability.

The after-tax cash flow from the sale of the equipment is $16.1 million

Reasons:

The given parameter are;

Original cost of the equipment = $40 million

The type of depreciation = Straight line depreciation

Number of years of depreciation = 5 years

Current price at which it can be sold = $18 million

The tax rate of the firm = 35%

Required:

The after-tax cash flow from the sale of the equipment.

Solution:

The Cash Flow After Tax, CFAT, is given as follows;

CFAT = Net income + Amortization  + Depreciation  + Other non-Cash Cash Charges

The annual depreciation is given as follows;

[tex]Annual \ depreciation = \dfrac{\$40 \ million - \$18 \ million}{5 \ years} = \$4.4 \ million \ per \ year[/tex]

Selling the equipment gives;

The Earnings Before Tax (EBT) = $18 million

The Net Income = Income - Tax = $18 million - (35% × $18 million)

The Net Income = $11.7 million

Cash Flow After Tax CFAT = Net income + Depreciation

∴ CFAT = $11.7 million + $4.4 million = $16.1 million

The after-tax cash flow = $16.1 million

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Related Questions

Rewrite 2/3 and 1/15 as a unit rate​

Answers

Answer:

10:1

Step-by-step explanation:

Answer:

Step-by-step explanation:

The unit rate is found by dividing.

2/3 = 0.(6)

1/15 = 0.(6)

what the estimated quotient for the following problem?
343.23 divdend by 18

Answers

Answer:

Step-by-step explanation:

17

343.23 /18 is 19.0683333333

so the closest number to that is 17, if not try 23!

The deepest point in the world is the Mariana Trench in the western Pacific Ocean. It is 36,198 ft below sea level. What integer represents this depth?

Answers

Answer:

-36,198 feet below sea level

Step-by-step explanation:

the table shows the pricing for four different types of gasoline which type cost the least per gallon a $20.20 for 10 galb $26.04 for 12 gal c $28.14 for 14 gal d $30.45 for 15 gal​

Answers

Answer:

A is the cheapest deal.

Step-by-step explanation:

find unit rate; cost / quantity

20.20 / 10 = $2.02 per gallon

26.04 / 12 = $2.17 per gallon

28.24 / 24 = $2.01 per gallon

30.45 / 25 = $2.03 per gallon

Whitney and Destiny hung out at the mall on Saturday. They spent 45 minutes shopping for clothes and 1 hour at the food court. Then they spent 30 minutes at the video arcade before heading home. It was 12:45 P.M. when Whitney and Destiny left the mall. What time did they start shopping for clothes?

Answers

Answer:

11.15 i think

Step-by-step explanation:

Twenty-five students were randomly selected and asked "How many hours of TV did you watch this weekend?" The sample mean for the data is 5 hours.
The dotplot below shows the distribution of the sample mean hours of TV watched for 500 random samples of size 25 taken with replacement from the
original sample.
45
6
S.S
Simulated sample mean
Distribution of Simulated Mean
• samples mean SD
500 4.969 0.288
Use the results of the simulation to approximate the margin of error for the estimate of the mean number of hours of television watched. (answer in the
format 0.123)

Answers

Using a confidence level of 95%, the margin of error for the estimate of the mean number of television hours watched will be 1.129

The approximate margin of error can be calculated using the relation :

Margin of Error = [tex] Z_{\frac{α}{2}} \frac{σ}{\sqrt{n}} [/tex]

Sample size, n = 25 Standard deviation, = 2.88Confidence level = 95%

[tex] Z_{\frac{α}{2}} = 1.96 [/tex]

Margin of Error = [tex] 1.96 \frac{2.88}{\sqrt{25}} [/tex]

Margin of Error = [tex] 1.96 \frac{2.88}{5} [/tex]

Margin of Error = [tex] 1.96 \times 0.576 [/tex]

Margin of Error = [tex] 1.129 [/tex]

Therefore, the margin of error for the estimate of the mean number of television hours watched is 1.129.

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A rectangular field is 350 meters long and 200 meters wide. What is the area of the field in square kilometers? Do not round your answer. Be sure to include
the correct unit in your answer.
0
km
km2
km

Answers

The area of the rectangular field is 0.07 square kilometers (km²).To find the area of the rectangular field in square kilometers, we need to convert the given dimensions from meters to kilometers.

To find the area of the rectangular field in square kilometers, we need to convert the given dimensions from meters to kilometers and then calculate the area.

Given:

Length of the field = 350 meters

Width of the field = 200 meters

To convert from meters to kilometers, we divide the measurements by 1000, since there are 1000 meters in a kilometer.

Length in kilometers = 350 meters / 1000 = 0.35 kilometers

Width in kilometers = 200 meters / 1000 = 0.2 kilometers

Now that we have the dimensions of the field in kilometers, we can calculate the area.

Area of the field = Length in kilometers * Width in kilometers

Area of the field = 0.35 kilometers * 0.2 kilometers

Multiplying the values, we get:

Area of the field = 0.07 square kilometers

Therefore, the area of the rectangular field is 0.07 square kilometers.

It's important to include the correct unit in the answer, which is "square kilometers" (km²). This represents the unit for measuring the two-dimensional area. In this case, the area of the field is 0.07 km².

For more such questions on area

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#SPJ8

PLEASE HELP!!
Guys please help i need this

Answers

Answer:

Because they are both base angles of isosceles triangles

WHICH OF THE FOLLOWING IS NONLINEAR FUNCTION?

Answers

Answer:

Option A.

Step-by-step explanation:

Try To Cross Check It 1st

A car is being compacted into a rectangular solid. The volume is decreasing at a rate of 2 m3/sec. The length and width of the compactor are square, but the height is not the same length as the length and width. If the length and width walls move toward each other at a rate of 0.25 m/ sec, find the rate at which the height is changing when the length and width are 2 m and the height is 1.5 m.

Answers

Using implicit differentiation, it is found that the height is changing at a rate of -0.875 m/sec.

The volume of a rectangular solid of length l, width w and height h is given by:

[tex]V = lwh[/tex]

Applying implicit differentiation, the rate of change of the volume is given by:

[tex]\frac{dV}{dt} = wh\frac{dl}{dt} + lh\frac{dw}{dt} + lw\frac{dh}{dt}[/tex]

In this problem:

Volume is decreasing at a rate of 2 m3/sec, hence [tex]\frac{dV}{dt} = -2[/tex]The length and width walls move toward each other at a rate of 0.25 m/ sec, hence [tex]\frac{dl}{dt} = \frac{dw}{dt} = 0.25[/tex]Length and width are 2 m and the height is 1.5 m, hence [tex]l = w = 2, h = 1.5[/tex]

Then:

[tex]\frac{dV}{dt} = wh\frac{dl}{dt} + lh\frac{dw}{dt} + lw\frac{dh}{dt}[/tex]

[tex]-2  = 2(1.5)(0.25) + 2(1.5)(0.25) + 2(2)\frac{dh}{dt}[/tex]

[tex]4\frac{dh}{dt} = -3.5[/tex]

[tex]\frac{dh}{dt} = -\frac{3.5}{4}[/tex]

[tex]\frac{dh}{dt} = -0.875[/tex]

The height is changing at a rate of -0.875 m/sec.

A similar problem is given at https://brainly.com/question/9543179


Local Internet service costs $685 for 24 months. This includes a one-time installation fee of
$85. What is the monthly fee?

Answers

Answer:

25

Step-by-step explanation:

685-85 = 600

600 divided by 24 = 25

Hope this helps!

eight times a number

Answers

Answer:

Equals the same number 8 times itself, this is the equation: 8X.

Step-by-step explanation:

Answer:

Look down.

Step-by-step explanation:

8x1=8

8x2=16

8x3=24

8x4=32

8x5=40

8x6=48

8x7=56

8x8=64

8x9=72

8x10=80

I dont know if this is what you were asking for but its all yours now!

I need 425 divided by 5 with the algorithm please!

Answers

Answer:

85

Step-by-step explanation:

I attached my work in a picture below!

Hope this helps :D

the sum of any 2 intergers is either postive or negative. true or false​

Answers

Answer:

True.

Hope this helps.

The original price of a dress is 95.00. A discount of 10% is offered for cash payment. How much does one save by paying cash for the dress?

Answers

Answer:

10% of 95 is 9.5

So 95 - 9.5 = 85.5

Will give Brainliest. Amoli and Ella are converting measurements between inches and feet. Amoli says that the constant of proportionality is 12. Ella says it is 1/12. Who do you agree with? Explain your thinking.​

Answers

it is 1/12 because you are using inches(which is 1/12 of a foot) and feet, which if it said feet to inches. THEN IT WOUKD BE 12 BUT IT IS 1/12

NO LINKS!!!!

Consider the following sequence 4, 8, . . .
a. Assuming the sequence is arithmetic:
i. Write the next four terms
ii. What is the generator?
iii. Write a formula for t(n).
iv. Create a table and graph your sequence.

b. Assuming the sequence is geometric:
i. Write the next four terms

ii. What is the generator?

iii. Write a formula for t(n).

iv. Create a table and graph your sequence

Answers

9514 1404 393

Answer:

  a. 12, 16, 20, 24; t(n)=4n

  b. 16, 32, 64, 128; t(n)=2·2^n

Step-by-step explanation:

a. The difference of the given terms is 8-4=4, so the arithmetic sequence has a first term of 4 and a common difference of 4. The general term has the formula ...

  t(n) = t(1) +d(n -1)

  t(n) = 4 +4(n -1) . . . . . with t(1) and d filled in

  t(n) = 4n . . . . . . . . . . simplified

This formula can be considered to be the generator of the sequence. For values of n from 3 to 6, the next four terms are ...

  t(3) = 12; t(4) =16; t(5) = 20, t(6) = 24

A table and graph are shown in the first attachment.

__

b. The ratio of the given terms is 8/4 = 2, so the geometric sequence has a first term of 4 and a common ratio of 2. The general term has the formula ...

  t(n) = t(1)·r^(n-1)

  t(n) = 4·2^(n-1) . . . . . . . with t(1) and r filled in

  t(n) = 2·2^n . . . . . . . . simplified

This formula can be considered to be the generator of the sequence. For values of n from 3 to 6, the next four terms are ...

  t(3) = 16; t(4) = 32; t(5) = 64; t(6) = 128

A table and graph are shown in the second attachment.

henry is designing a tablecloth for his dining room table. He wants to buy fabric in his favorite color to make the tablecloth. use the dimensions below to determine how much fabric he need to buy. 12 feet 7 feet

Answers

Yes yes yes yea yes yes yes yes ye

Josie calculated 1/5+2/7 and said the answer was 2/7 explain how you know that Josie's answer dose not make sense​

Answers

[tex]\stackrel{\textit{something added to it}}{\boxed{\cfrac{}{} \qquad }+\cfrac{2}{7}}\implies \stackrel{\textit{will be greater than }\frac{2}{7}}{\cfrac{2}{7}+\textit{that something}}[/tex]

draw a diagram for this fraction

2 2/3​

Answers

Answer:

OOO

OOO

OO

Step-by-step explanation:

Where OOO is == 1.

OO is 2/3 of OOO.

Can someone plsss help me

Answers

Answer:

y = -5/3 x + 40

Step-by-step explanation:

The general form is y = ax + b, where a is the slope and b is the y intercept.

So immediately you can see that b must be 40, since the line crosses the y axis at 40.

The slope can be calculated by finding two "nice" points on the line that are also grid lines.

How about (0,40) and (6, 30).

Then, calculate the slope by dividing the y difference by the x difference:

(30-40)/(6-0) = -10/6 = -5/3

So C must be the answer.

(?)(3x — 2)= 24x^2 — 16x

Answers

[tex]\boxed{?}(3x-2)=24x^2-16x\implies \boxed{?}=\cfrac{24x^2-16x}{3x-2}\\\\\\\boxed{?}=\cfrac{\stackrel{\textit{common factoring}}{8x~~\begin{matrix} (3x-2) \\[-0.7em]\cline{1-1}\\[-5pt]\end{matrix}~~}}{~~\begin{matrix} 3x-2 \\[-0.7em]\cline{1-1}\\[-5pt]\end{matrix}~~}\implies \boxed{?}=8x[/tex]

1
73
Lech bought 8 t-shirts al
for the same proe. After
using a coupon that took $4
off the pnce, her told
before tax was $36. What
was the cost of each shirts

Answers

Answer:

[tex]t=5[/tex] dollars per t-shirt

Step-by-step explanation:

Read the problem and write your equation while following along with it

We have 8 t-shirts

Lets 8 t-shirts be represented by 8t

So for our equation we will place and [tex]8[/tex]

Our equation: [tex]8t[/tex]

Now it says we have a coupon that subtracts 4 dollars from our total

Our equation: [tex]8t-4[/tex]

The final part to add to our equation says that our total before tax was 36 dollars

So here is our equation: [tex]8t-4=36[/tex]

add [tex]$[/tex][tex]4[/tex] to both sides

[tex]8t=40[/tex]

Divide both sides by [tex]8[/tex]

[tex]t=5[/tex] dollars per t-shirt

-Side note, make sure to spell your question right. It was a tad bit confusing to read at the start.

-Brainliest please :)

A particular county with a population of 7.9 million people. In that county, an average of 96 people per year die by falling from a balcony each year.Assuming that these figures are current, what is the probability that a randomly selected individual from this country will die by falling from a balcony in a given year? Express your answer as a decimal rounded to 8 decimal places. Do not convert it to a percentage

Answers

Answer:

7.9000000÷96

=0.0822916667

MARK ME BRAINLIEST PLS I WILL GET A NEW RANK

I
Graph the direct variation equation. Y=1/3x
Which graph is correct

Answers

It’s A , or the first graph

9 ⋅ (−4) ⋅ (−4) ⋅ (−7) = ?
20 pts
brainlyiest if correct

Answers

Answer:

The answer is -1008, it's in the comments

what has a fraction in numerator, denominator or both???

Answers

a fraction that has a numerator and a denominator, is called a Complex fraction, i’m not sure if this is what you were asking for though.

The primary difference(s) between the standard deviation and the coefficient of variation as measures of risk are:

Answers

How long does it have to be

A line of a slope of 8 passes through the point (-6,4). What is its equation in point slope form?

Answers

Answer:

[tex]\huge\boxed{y-4=8(x+6)}[/tex]

Step-by-step explanation:

The equation of a line in the point-slope form:

[tex]y-y_1=m(x-x_1)[/tex]

[tex]m-slope\\\\(x_1;\ y_1)-point[/tex]

We have:

[tex]m=8\\\\(-6;\ 4)\to x_1=-6;\ y_1=4[/tex]

Substitute:

[tex]y-4=8(x-(-6))\\\\y-4=8(x+6)[/tex]

Apply the distributive property to factor out the greatest common factor.
6+30=6+30

Answers

6 + 30

The greatest common factor is 6, so take it out. We get...

6 (1 + 5)

Let's verify it.

6 (1 + 5) = 6 + 30

6(6) = 6 + 30

36 = 36

LHS = RHS, Hence proved.

______

RainbowSalt2222 ☔

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