TVM Consulting bought new building for its headquarters in the year 2000. The purchase cost was 776,739 dollars and in addition it had to spend 88,402 dollars adapting the space for its services. The building has been in use since June 21st, 2000. TVM Consulting forecasted that in 2030 the building would have a net salvage value of $1,000,000. Using the US Straight Line Depreciation Schedule, estimate the Net Cash Flow from Salvage Value if TVM consulting decides to sell the building on April 15th 2004 for $1,210,194, and that the prevailing tax rate for capital gains is 34%. (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas)

TVM Consulting bought new building for its headquarters in the year 2000. The purchase cost was 776,739 dollars and in addition it had to spend 88,402 dollars adapting the space for its services. The building has been in use since June 21st, 2000. TVM Consulting forecasted that in 2030 the building would have a net salvage value of $1,000,000. Using the US Straight Line Depreciation Schedule, estimate the Net Cash Flow from Salvage Value if TVM consulting decides to sell the building on April 15th 2004 for $1,210,194, and that the prevailing tax rate for capital gains is 34%. (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 6CE

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