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question 2

Essay

Use the information for the question(s)below.
Kinston Industries is considering investing in a machine that will cost $125,000 and will last for three years.The machine will generate revenues of $120,000 each year and the cost of goods sold will be 50% of sales.At the end of year three the machine will be sold for $15,000.The appropriate cost of capital is 10% and Kinston is in the 21% tax bracket.
-Assume that Kinston's new machine will be depreciated straight line to a salvage value of $5000 at the end of year three.What is the after-tax salvage value of this project?

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Definitions:

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, which will then undergo cell division and grow into an embryo.

Chromosome

A molecule made of DNA and proteins carrying genetic information in the form of genes.

Prenatal Development

Prenatal Development involves the process of growth and development within the womb, from the formation of an embryo to the development of a fetusu until birth.

Mechanical Interference

Disruption or alteration of a process or function due to the physical interaction between mechanical components.