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A small business sold an equipment for $100,000 after depreciating the equipment using SOYD depreciation method. The federal tax liability on this depreciation recapture is $34,000 if the company also had other taxable income of $150,000 in that year.

The first-year after tax-cash flow is _____________.

The capitalized cost of any investment may be determined using the equation P = A/i where P is the capitalized cost, A is the annual amount and i is the interest rate.

The cost of capital is average interest rate from all sources of funds generated by a company.

Determine the amount of 49-th monthly payment.

The annual maintenance cost of a monument in the state capital is estimated to be $4850. A perpetual i fund of $100,000 is set up to pay for this maintenance expenditure. Determine the interest rate this fund earns if the interest is compounded quarterly.

A continuous improvement team has helped to save $20,000 for the company on a process that will not be changed for the next 10 years. If the team has spent $50,000 on the improvement project, the net present worth (NPW) of savings on this improvement project is $150,000 at a MARR of 5%.

Determine the ROR for a project that has an initial cost of $82,000 and would provide positive cash flows of $12,000 the first year, $14,000 the second year, $16,000 the third year, $18,000 the fourth year, $20,000 the fifth year, and $15,000 the sixth year.

Marginal cost is the cost at which an asset has the minimum cost life.

If the optimistic, most likely and pessimistic estimates of the life of an asset are 6, 8 and 10 respectively, then the estimates of the life is 8 years