Your Firm Needs a Computerized Machine Tool Lathe That Costs

question 11

Multiple Choice

Your firm needs a computerized machine tool lathe that costs $50,000, requires $10,000 in installation, and another $12,000 in maintenance for each year of its three-year life. After three years, this machine will be replaced. The machine falls into the MACRS three-year class life category. Assume a tax rate of 21 percent and a discount rate of 12 percent. Calculate the depreciation tax shield for this project in year 1.

• A) $7,199.20
• B) $8,886.00
• C) $4,199.58
• D) $6,554.40

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Countries located in the continent of Europe, each with its distinct government, culture, and history.

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Short for the United States, a country in North America known for its significant global influence in economic, political, and cultural fields.

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Structured systems of rules and regulations designed to guide behavior within societies or organizations, often enforced by legal or official means.

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Infractions or breaches of rules that are considered to be of relatively low severity or impact.