Bruno Is Acquiring a New Machine with a Life of 5

question 19

Multiple Choice

Bruno is acquiring a new machine with a life of 5 years for use on its production line. The following data relate to this purchase: $\begin{array}{lr}\text { Cost of new machine } & \$ 100000 \\\text { Annual cost savings in cash expenses } & 45000 \\\text { Terminal value } & 8000 \\\text { Maintenance required in the 4th year } & 5000 \\\text { Book value of the old machine } & 20000\end{array}$ The new machine would replace an old fully-depreciated machine. The old machine can be sold for $15,000 at the time the new equipment is acquired. The income tax rate is 30%, and the discount rate is 12%. Arnold uses the straight-line method for depreciation on all machines (ignore the half-year convention) .
The present value of the maintenance cost in year 4 is:

• A) $420
• B) $2,226
• C) $3,180
• D) $954

Distinguish between different forms of political organizations (band, tribe, chiefdom, state).

Grasp the concept of hereditary power and its implications for political structure in chiefdoms.

Recognize the influence of natural selection on gender roles and societal expectations.

Understand the role of justice systems in maintaining social order in various societies.

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Definitions:

Reflection

A process or transformation that maps a figure to its mirror image across a specified axis.

Compounded

The process of calculating interest on both the initial principal and the accumulated interest from previous periods.

Principal

The original amount of money on which interest is calculated.

Composition

The act of combining two functions by applying one function to the result of another.