Your Firm Needs a Machine Which Costs $90,000, and Requires

question 97

Multiple Choice

Your firm needs a machine which costs $90,000, and requires $30,000 in maintenance for each year of its five-year life. After five years, this machine will be replaced. The machine falls into the MACRS five-year class life category. Assume a tax rate of 21 percent and a discount rate of 13 percent. What is the depreciation tax shield for this project in year 5?

• A) $471.74
• B) $1,347.84
• C) $2,177.28
• D) $6,739.20

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Definitions:

Gender Differences

The distinctions in characteristics, behaviors, and roles traditionally associated with males and females, often shaped by social and cultural factors.

Spatial Abilities

The ability to comprehend, reason with, and recall the spatial relationships between objects or spaces.

Test-wise

Referring to an individual's ability to utilize strategies that improve their performance on tests, often through familiarization with the test format rather than the test content itself.

Trick Questions

Questions designed to confuse or deceive people in order to test their knowledge or to lead them to make incorrect assumptions.