Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Polycorp is about to lease mining equipment worth $1,500,000. The corporate tax rate is 20% and the equipment can be depreciated on a diminishing value basis of 30% over 4 years (salvage value is zero). Polycorp's cost of debt is 8%. find out the present value of the tax savings from the depreciation foregone? Assume tax is paid in the year of income. Assume the remaining balance is added to the depreciation for year four.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M940340

Have any Question? 


Related Questions in Basic Finance

1 utilities are usually very highly leveraged how is it

1. Utilities are usually very highly leveraged. How is it that they are able to carry such high levels of debt? 2. How does demand for utilities differ from demand for other products or services? 3. For regulated utiliti ...

1 why might it be argued that corporations do not have a

1. Why might it be argued that corporations do not have a comparative advantage when investing in real estate as a means of diversification from the core business? 2. How does the analysis of a sale-leaseback differ from ...

The expected return on hilo stock is 1204 percent while the

The expected return on HiLo stock is 12.04 percent while the expected return on the market is 10.52 percent. The beta of HiLo is 1.28. What is the risk-free rate of return?

1 using the internet the library or another information

1. Using the Internet, the library, or another information source, print out three different articles that describe the same disaster event. Compare the three articles to determine which provides the most useful informat ...

Suppose the risk-free interest rate is 59nbspapr with

Suppose the risk-free interest rate is 5.9% APR with monthly compounding. If a $1.7 million MRI machine can be leased for 5 years for $23,500 per month, what residual value must the lessor recover to break even in a perf ...

1 is a foreclosure sale sometimes desirable or even

1. Is a foreclosure sale sometimes desirable or even necessary when the mortgagor is willing to give a voluntary deed? 2. What are the risks to the lender if a borrower declares bankruptcy? 3. What is a deficiency judgme ...

Assignment - merger acquisition and international

Assignment - Merger, Acquisition, and International Strategies Choose two (2) public corporations in an industry with which you are familiar - one (1) that has acquired another company and operates internationally and on ...

Analysis of denver furniture corpdenver furniture corp is

Analysis of Denver Furniture Corp. Denver Furniture Corp. is nationally recognized for making high-quality products. Management is concerned that the company is not fully exploiting its brand power. Denver's production m ...

An article in the economist magazine in 2010 observed the

An article in the Economist magazine in 2010 observed: "The euro's slide implies that the [euro] zone's members will be relying on foreign demand, not their own, to restore their fortunes." a. What does the article mean ...

1 name two different ways that mptbs can be

1. Name two different ways that MPTBs can be overcollateralized. 2. What is a CMO? Explain why a CMO has been called as much of a marketing innovation as a financial innovation. 3. What is meant by a derivative investmen ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen