Consider an Asset That Costs $311,000 and Is Depreciated Straight-Line

question 43

Multiple Choice

Consider an asset that costs $311,000 and is depreciated straight-line to zero over its six-year tax life.The asset is to be used in a four-year project; at the end of the project, the asset can be sold for $58,000.If the relevant tax rate is 34 percent, what is the aftertax cash flow from the sale of this asset?

• A)$73,526.67
• B)$68,411.19
• C)$70,103.33
• D)$40,466.67
• E)$42,473.33

Distinguish between dependent and independent demand techniques in inventory and production planning.

Know the importance of accurate documentation and scheduling in production management systems.

Understand the concept of mortgages and calculate mortgage payments.

Calculate the future value of annuities and single cash flows.

---

Definitions:

Formal Operational Stage

The stage in Piaget's theory of cognitive development (beginning around age 12) where individuals develop the ability to think abstractly, reason logically, and plan systematically.

Cognitive Development

The study of how thinking, problem solving, and intelligence change and mature through childhood into adulthood.

Object Permanence

The understanding that objects continue to exist even when they cannot be perceived.

Sensorimotor Stage

The first of the four stages of cognitive development in Piaget's theory, occurring from birth to age 2, where infants learn about the world through their sensory impressions and motor activities.