Matty's Place Is Considering the Installation of a New Computer

question 89

Multiple Choice

Matty's Place is considering the installation of a new computer system that will cut annual operating costs by $11,001. The system will cost $48,000 to purchase and install. This system will belong in a 40% CCA class. What is the amount of the increase in earnings before interest and taxes in the first year for this project?

• A) -$9,600
• B) $1,000
• C) $1,400
• D) $11,000
• E) $20,600

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Definitions:

Outward Manifestation

Outward manifestation refers to the external display or expression of a condition, intention, or agreement, observable by others.

Reasonable Amount

an amount or quantity that is considered fair, appropriate, or moderate under the circumstances.

Counteroffer

A response to an offer in a negotiation, where the original offer is rejected and a new offer is presented.

Original Offer

The initial proposal or bid made in a negotiation or business agreement.