WK4 cla 1

Taxes are costs, and, therefore, changes in tax rates can affect consumer prices, project lives
and the value of existing firms. Evaluate the change in taxation on the valuation of the following
project:

(Table attached blow) and answers

Assumptions: Tax depreciation is straight-line over three years. Pre-tax salvage value is 25 in
year 3 and 50 if the asset is scrapped in year 2. Tax on salvage value is 40% of the difference
between salvage value and book value of the investment. The cost of capital is 20%.
a. Please verify that the information given above yields NPV = 0.
b. If you decide to terminate the project in year two (2) what would be the NPV of the
project?
c. Suppose that the government now changes tax depreciation to allow a 100% write-off in
year one (1). How does this affect your answers to parts a and b above?
d. Would it now make sense to terminate the project after two rather than three years?
e. How would your answers change if the corporate income tax were abolished entirely?
Please explain your answer in detail and provide in-text citations.

***************
5 pages, must citation from book. follow APA 7 format, ass more discussions bring the similarity to 20% or less.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!
Open chat
1
You can contact our live agent via WhatsApp! Via + 1 3234125597

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 20% with the discount code CLASS