Use the Following Information to Answer the Question(s)below

question 6

Multiple Choice

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 cash flow that Krusty Krab will incur today (Year 0) if they elect to upgrade to the new grill is closest to:

• A)-$80,000.
• B)-$50,000.
• C)-$47,900.
• D)+$30,000.

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Definitions:

Switches

Devices used to connect or disconnect electrical circuits, allowing for the control of power flow or signal paths in a system.

Pushbuttons

Manual switches that, when pressed, complete an electrical circuit to initiate a function or process.

PLC

Stands for Programmable Logic Controller, an industrial digital computer which has been ruggedized and adapted for the control of manufacturing processes, such as assembly lines, or robotic devices.

Input Image Table File

A file used in digital processing that contains data or parameters for images to be processed or analyzed.