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question 72

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Use the following information to answer the question(s) below.
Two years ago,Krusty Krab Restaurant purchased a grill for $50,000.The owner,Eugene Krabs,has learned that a new grill is available that will cook Krabby Patties twice as fast as the existing grill.This new grill can be purchased for $80,000 and would be depreciated straight line over 8 years,after which it would have no salvage value.Eugene Krab expects that the new grill will produce EBITDA of $50,000 per year for the next eight years while the existing grill produces EBITDA of only $35,000 per year.The current grill is being depreciated straight line over its useful life of 10 years after which it will have no salvage value.All other operating expenses are identical for both grills.The existing grill can be sold to another restaurant now for $30,000.Krusty Krab's tax rate is 21%.
-The incremental after-tax cash flow that Krusty Krab will receive from selling the existing grill is closest to:


Definitions:

Maximum Variation Sampling

A sampling strategy that aims to capture and describe the central themes or concepts that cut across a great deal of participant or case variation.

Strategy

Strategy refers to a plan of action designed to achieve a long-term or overall aim, often involving tactical decisions.

Unusual Cases

Instances or situations that do not follow the general rule or pattern, often considered outliers or anomalies.

Sampling Technique

A method used in statistics for selecting a subset of individuals from a population to estimate characteristics of the whole population.

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