Your Firm Needs a Machine Which Costs $100,000, and Requires

question 91

Multiple Choice

Your firm needs a machine which costs $100,000, and requires $25,000 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 14 percent. What is the depreciation tax shield for this project in year 3?

• A) $2,073.40
• B) $3,110.10
• C) $9,626.50
• D) $14,810.00

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Definitions:

Differentiated Marketing Mix

A marketing strategy where a company markets its products or services using different combinations of the four Ps (Product, Price, Place, Promotion) to target specific customer segments.

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Government Regulations

Rules established by governments designed to control the way companies and individuals conduct business, protecting the public's interests.

Tailor Products

To customize or modify products to meet specific customer requirements or preferences, enhancing satisfaction and competitive advantage.