Your Firm Needs a Machine Which Costs $125,000, and Requires

question 111

Multiple Choice

Your firm needs a machine which costs $125,000, and requires $5,000 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 10 percent. If this machine can be sold for $15,000 at the end of year 3, what is the after-tax salvage value?

• A) $9,262.50
• B) $9,750.00
• C) $11,692.69
• D) $13,795.13

---

Definitions:

Kidneys

Organs in the urinary system responsible for filtering waste from the blood and producing urine.

Trophoblast

The outer layer of cells surrounding a blastocyst in early pregnancy, which develops into the placenta and provides nutrients to the embryo.

Amniotic Sac

A fluid-filled sac that surrounds and protects the embryo and fetus in the uterus during pregnancy.

Zygote

The first cell created through the fusion of an egg cell and a sperm cell, signifying the start of a new organism's growth.