Your Firm Needs a Computerized Machine Tool Lathe That Costs

question 61

Multiple Choice

Your firm needs a computerized machine tool lathe that costs $50,000, requires $10,000 in installation, $5,000 in freight charges, 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. If the lathe can be sold for $7,000 at the end of year 3, what is the after-tax salvage value?

• A) $6,499.35
• B) $6,541.47
• C) $5,999.45
• D) $4,816.50

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Definitions:

Fibrin

A protein involved in blood clotting, forming a fibrous mesh that impedes the flow of blood.

Platelets

Small blood cells that play a key role in blood clotting.

Rh Antigen

A protein found on the surface of red blood cells, determining the presence or absence of the Rh factor in blood types.

AB Negative

A rare blood type in the ABO blood system, characterized by the absence of A, B, and Rh antigens on red cells.