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

---

Definitions:

Output Stream

A stream used for writing data to a destination, which could be a file, an array, a network socket, or another program.

File Name

A file name is the unique identifier of a file in an operating system, used to distinguish it from other files and often contains an extension indicating the file type.

Scanner Class

In Java, the Scanner class is used to read input from various sources, including user input from the console, making it useful for parsing and processing input data.

NextFloat

A method typically seen in programming languages like Java to read or generate the next floating-point number from an input source or a random number generator.