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:

Cheyne-Stokes Respirations

A pattern of breathing marked by a gradual increase in depth followed by a decrease, resulting in temporary cessation of breathing.

Intracranial Pressure (ICP)

Refers to the pressure inside the skull and thus in the brain tissue and cerebrospinal fluid.

Extension or Flexion Posturing

Neurological postures that indicate severe brain damage, where extension posturing involves stiffening of the limbs away from the body, and flexion posturing involves stiffening of the limbs towards the body.

Generalized Seizure

A type of seizure that affects both hemispheres of the brain simultaneously, often leading to loss of consciousness and body convulsions.