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

question 41

Multiple Choice

Use the following information to answer the question(s) below.
(Include the MACRS Table from the Appendix. )
Casa Grande Farms is considering purchasing multiple tractors for a total purchase price of $540,000.These tractors are expected to generate EBITDA of $250,000 for each of the next three years.Casa Grande Farms has a 21% tax rate and has a cost of capital of 10%.
-Assuming that Casa Grande Farms depreciates these tractors straight line over the three-year life,then the NPV of buying the tractors is closest to:

• A)$45,156.
• B)$36,225.
• C)$81,715.
• D)$513,235.

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Definitions:

Cohort

A group of individuals sharing a common characteristic or experience within a defined period, often observed over time in research to identify patterns and outcomes.

Prospective Cohort

A study design where a group of individuals is followed over time to observe outcomes relative to exposure to certain risk factors.

Normative Aging

The process of aging that follows the typical patterns and landmarks at each life stage, often studied in longitudinal research.

Baltimore Longitudinal

A study of aging that tracks the health and wellness of participants over time to understand how various factors affect health as people age.