subject
Business, 07.10.2019 18:30 soonerlady19

Firm l has $670,000 to invest and is considering two alternatives. investment a would pay 6 percent ($40,200 annual before-tax cash flow). investment b would pay 4.8 percent ($32,160 annual before-tax cash flow). the return on investment a is taxable, while the return on investment b is tax exempt. firm l forecasts that its 21 percent marginal tax rate will be stable for the foreseeable future. a. compute the explicit tax and implicit tax that firm l will pay with respect to investment a and investment b. b-1. what is the annual after-tax cash flow for investment a

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 10:50
You are evaluating two different silicon wafer milling machines. the techron i costs $285,000, has a three-year life, and has pretax operating costs of $78,000 per year. the techron ii costs $495,000, has a five-year life, and has pretax operating costs of $45,000 per year. for both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $55,000. if your tax rate is 24 percent and your discount rate is 11 percent, compute the eac for both machines.
Answers: 3
question
Business, 22.06.2019 13:50
Selected t-account balances for bloomfield company are shown below as of january 31, which reflect its accounting adjustments. the firm uses a calendar-year accounting period, but prepares monthly accounting adjustments.suppliesjan. 31 bal. 1,800 1,800 jan. 31 bal.supplies expensejan. 31 bal. 1,920 1,148 jan. 31 bal.prepaid insurancejan. 31 bal. 1,148 1,148 jan. 31 bal.insurance expensejan. 31 bal. 164 164 jan. 31 bal.wages payablejan. 31 bal. 1,400 1,400 jan. 31 bal.wages expensejan. 31 bal. 6,400 6,400 jan. 31 bal.truckjan. 31 bal. 17,376 17,376 jan. 31 bal.accumulated depreciation -truckjan. 31 bal. 5,068 5,068 jan. 31 bal.a. if the amount in supplies expense represents the january 31 adjustment for the supplies used in january, and $1,240 worth of supplies were purchased during january, what was the january 1 beginning balance of supplies? $answerb. the amount in the insurance expense account represents the adjustment made at january 31 for january insurance expense. if the original insurance premium was for one year, what was the amount of the premium, and on what date did the insurance policy start? amount of the premium $answerthe policy began on answerjune 1july 1august 1september 1october 1november 1 of the previous year.c. if we assume that no beginning balance existed in either in either wage payable or wage expense on january 1, how much cash was paid as wages during january? $answerd. if the truck has a useful life of four years (or 48 months), what is the monthly amount of depreciation expense, and how many months has bloomfield owned the truck? answermonths
Answers: 1
question
Business, 23.06.2019 09:30
Which part in a cover letter do you write down skills and experience
Answers: 1
question
Business, 23.06.2019 15:10
Ansys license manager error capability cad interface parasolid does not exist in the ansys licensing pool non of the products enabling this capability are available in the specified license path
Answers: 2
You know the right answer?
Firm l has $670,000 to invest and is considering two alternatives. investment a would pay 6 percent...
Questions
question
Mathematics, 11.04.2021 22:50
question
Social Studies, 11.04.2021 22:50
Questions on the website: 13722361