Your Firm Needs a Machine Which Costs $60,000, and Requires

question 65

Multiple Choice

Your firm needs a machine which costs $60,000, and requires $15,000 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 10 percent. If this machine can be sold for $8,000 at the end of year 5, what is the after-tax salvage value?

• A) $3,456.00
• B) $4,544.00
• C) $5,200.00
• D) $7,045.76

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Definitions:

Malicious Program

Software designed to harm or secretly access a computer system without the owner's informed consent.

Consulting Business

A service-based organization that provides expert advice in a particular area, such as management, technology, or finance, to other businesses or individuals.

Minnesota-Based

Referring to an entity, such as a business or organization, that is located or primarily operates in the state of Minnesota, USA.

License Restrictions

Conditions and limitations imposed on the use of software or digital content, based on the agreement between the licensor and the licensee.