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A Corporation Is Evaluating the Relevant Cash Flows for a Capital

question 116

Multiple Choice

A corporation is evaluating the relevant cash flows for a capital budgeting decision and mustestimate the terminal cash flow. The proposed machine will be disposed of at the end of its usablelife of five years at an estimated sale price of $15,000. The machine has an original purchase price of$80,000, installation cost of $20,000, and will be depreciated using a 30% CCA rate. The firm has a40 percent tax rate on ordinary income. The terminal cash flow is ___________. Assume the asset pool is closed at the end of the project.

Relate the impact of culture, society, and personal factors on consumer wants and needs.

Assess the role and impact of social media within the marketing mix.

Understand ethical considerations in marketing decision-making.

Recognize the importance of marketing analytics in evaluating marketing performance.

Definitions:

Credit Portion

The part of a journal entry that records the increase in liabilities or equity or the decrease in assets.

Trial Balance

A financial report that lists the balances of all ledgers accounts on a specified date, used to verify that the total debits equal total credits in the accounting system.

Account Balance

The difference between the total debits and total credits in an account, representing the current amount in that account.

Debits

Entries that increase asset or expense accounts, or decrease equity, liability, or revenue accounts, typically noted on the left side of an accounting ledger.