Homer Corp

question 116

Multiple Choice

Homer Corp.is considering the purchase of a new piece of equipment.The cost savings from the equipment would result in an annual increase in net income after tax of $100,000.The equipment will have an initial cost of $400,000 and have a 5-year life.If the salvage value of the equipment is estimated to be $75,000,what is the annual net cash flow?

• A)$25,000
• B)$35,000
• C)$165,000
• D)$175,000

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Definitions:

Physiologically Risky

Situations or activities that pose a potential danger or threat to the physical health or well-being of individuals.

Depersonalization

A psychological state in which an individual feels detached from their thoughts, feelings, or sense of identity, often as a response to stress or trauma.

Emotional Exhaustion

A state of feeling overly drained and depleted of emotional resources, often as a result of prolonged stress or burnout.

Low Accomplishment

Indicates a situation or outcome where objectives or targets have not been successfully met or achieved at the desired level.