Axios Is a Software Manufacturer What Is the Relevant After-Tax Cash Flow Associated with Disposing

question 53

Multiple Choice

Axios is a software manufacturer. Managers are considering a new equipment proposal. The income tax rate is 40%, and the discount rate is 10%. The following data are available: $\begin{array}{lcc}&\underline{\text { Old Equipment}}& \underline{\text {New Equipment }}\\\text { Purchase cost } & \$ 12,000 & \$ 36,000 \\\text { Annual depreciation } & 1,500 & 4,500 \\\text { Remaining useful life (years) } & 8 & 8 \\\text { Current selling price } & 14,400 & \text { not applicable } \\\text { Selling price in 8 years } & 1,000 & 2,000 \\\text { Annual operating costs } & 14,000 & 8,000\end{array}$
What is the relevant after-tax cash flow associated with disposing of the new equipment at its salvage value in 8 years?

• A) $800
• B) $2,000
• C) $1,200
• D) $0

Recognize the scope of duties encompassing administrative, clinical, and laboratory areas for medical assistants.

Comprehend the process and benefits of certification and recertification for medical assistants.

Understand the processes and importance of program accreditation for medical assisting education.

Acknowledge the continuous education requirements and professional development opportunities for medical assistants.

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Definitions:

Suicidal Ideation

Refers to one who considers suicide, contemplates suicide, is prone to suicide, or has suicidal thoughts.

Homicide

The act of one human killing another, including murder and manslaughter, varying in legality and circumstances.

African-American

An ethnic group in the United States consisting of individuals with African ancestry.

Hispanic

A term used to describe people, cultures, or countries related to the Spanish language, culture, or Spanish-speaking countries.