Computer Disk Duplicators, Inc $\text { "Not applicable }$ -For Proposal 1, the Annual Incremental After-Tax Cash Flow from Proposals

question 124

Multiple Choice

Computer Disk Duplicators, Inc. has been considering several capital investment proposals for the year beginning in 2004. For each investment proposal, the relevant cash flows and other relevant financial data are summarized in the table below. In the case of a replacement decision, the total installed cost of the equipment will be partially offset by the sale of existing equipment. The firm is subject to a 40 percent tax rate. The firm's cost of capital is 15 percent.
$\begin{array}{llll}&&\text { Proposal }\\\text { Type of Capital } & 1 & 2 & 3 \\\text { Budgeting Decision } & \text { Expansion } & \text { Replacement } & \text { Replacement }\\\hline&& \text { Mut Excl } & \text { Mut Excl } \\\text { Type of Project }&\text { Independent } & \text { with 3 } & \text { with 2 }\\\hline\text { Cost of new asset } & \$ 1,500,000 & \$ 200,000 & \$ 300,000 \\\text { Installation costs } & \$ 0 & \$ 0 & \$ 15,000 \\\text { CCA rate (new asset) } & 10 \% & 20 \% & 20 \%\\\text { Original cost of old asset } & \text { N/A* } & \$ 80,000 & \$ 100,000 \\\text { Purchase date (old asset) } & \text { N/A } & 1 / 1 / 1997 & 1 / 1 / 2000 \\\text { Sale proceeds (old asset) } & \text { N/A } & \$ 50,000 & \$ 120,000 \\\text { CCA rate (old asset) } & \text { N/A } & 20 \% & 20 \%\\\text { Annual net profits before }\\\text { depreciation \& taxes (old) }&N/A&\$30,000&\$25,000\\\text { Annual net profits before }\\\text { depreciation \& taxes (new) }&\$250,000&\$100,000&\$175,000\\\end{array}$
$\text { "Not applicable }$
-For Proposal 1, the annual incremental after-tax cash flow from operations for year 1 is__________

• A) $160,000
• B) $180,000
• C) $210,000
• D) $100,000

Analyze the characteristics, assessment methods, and educational strategies for gifted and talented children.

Understand the biological causes of intellectual disability.

Recognize various approaches used in gifted and talented programs.

Identify methodological issues in intelligence research, including the impact of cohort effects.

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Definitions:

Emotional Empathy

The capacity to understand and share the feelings of another person from their perspective.

Emotional Intelligence

The skill to recognize, govern, and communicate personal emotions, while also managing social interactions wisely and with empathy.

Cognitive Dissonance

A psychological phenomenon where an individual experiences mental discomfort from holding two or more contradictory beliefs, values, or ideas simultaneously.

Emotional Dissonance

A conflict or incongruence between felt emotions and the emotions that are expressed or expected to be expressed in a social context.