A project will produce an operating cash flow of $56,200 a year for 5 years. The initial fixed asset investment in the project w
ill be $238,900. The net aftertax salvage value is estimated at $67,000 and will be received during the last year of the project's life. What is the net present value of the project if the required rate of return is 15.2 percent
<span>First calculate the gross wage earned, accounting for the 8 hours of overtime at $30/hr. 40*$20 + 8*$30 = $1040. With this being the first pay of the calendar year, the worker is not hitting the 7,000 or 100,000 thresholds where taxes would not apply. We can therefore add all the tax rates together, 6+1.5+3.4+.8 = 11.7. So we multiple this by the earnings to find the sum of these taxes, 0.117 * $1040 = $121.68. Adding the flat rate for federal income tax gives the total tax withheld, $130 + $121.68 = $251.68. Subtracting this value from earnings gives the amount paid to the employee. $1040 - $251.68 = $788.32</span>
Collision indemnification provides coverage regardless of the type of contingency, whether the insured driver hits another car or runs his car through the back wall of his garage. In states that have no-fault indemnification laws, it additionally covers the costs when the conveyance damage is caused by another driver. If the insured driver damages another car, collision coverage does not cover the rehabilitation costs for the other car. These costs are covered by liability (bodily and physical property damage) indemnification coverage, which is conventionally required by law.If an insured conveyance is vandalized, damaged due to natural causes like a hail storm or flood, or purloined then comprehensive indemnification coverage applies. Most policies withal provide coverage for damages caused by hitting or being hit by animals or birds.Whether required by law or not, most lenders require collision and comprehensive indemnification as a condition of financing. Rates charged for collision and comprehensive coverage vary predicated on age of driver, driving record, credit history and local car larceny rates.