An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $9,400,000 and will be sold for $2,840,000 at the end of the project. If the tax rate is 23 percent, what is the aftertax salvage value of the asset?

Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from january 2014 to december 2015, for reconstruction at a cost of $535 million. if the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. the state department of transportation had to make its decision in 2014, one year before the start of construction (so that the first payment was one year away). so the department of transportation had the following choices: (i) close the highway during construction, at an annual cost of $267.5 million per year for two years. (ii) keep the highway open during construction, at an annual cost of $200 million per year for four years. now suppose the interest rate is 80%. calculate the present value of the costs incurred under each plan.

Suppose that in the year 2020 the price level in the fictional country of demet is 100, and the governement is considering

You’ve decided to buy a new computer that costs $1,500. but best buy will let you take the computer home without making paying the full price immediately. rather, best buy will let you pay $500 now, and $500 at the end of each of the next two years. if the interest rate is 5%, how much do you need today to make sure you can make all the payments to best buy?