Your Firm Needs a Computerized Machine Tool Lathe That Costs

question 100

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. If the lathe can be sold for $7,000 at the end of year 3, what is the after-tax salvage value?

• A) $6,463.66
• B) $4,446.00
• C) $5,927.20
• D) $6,154.20

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Definitions:

Two-Way

Communication or interaction that involves reciprocal action or influence, often referring to communication channels that allow for feedback from the recipient.

Communication

The process through which information is exchanged between individuals through a common system of symbols, signs, or behavior.

Face-To-Face Encounter

Direct, personal interaction between two or more individuals, typically in the same physical space.

MBA Degree

A Master of Business Administration degree, a graduate-level degree focusing on business management and practices.