Marshall-Miller & Company Is Considering the Purchase of a New

question 51

Multiple Choice

Marshall-Miller & Company is considering the purchase of a new machine for $50,000, installed. The machine has a tax life of 5 years, and it can be depreciated according to the following rates. The firm expects to operate the machine for 4 years and then to sell it for $12,500. If the marginal tax rate is 40%, what will the after-tax salvage value be when the machine is sold at the end of Year 4?

• A) $8,878
• B) $9,345
• C) $9,837
• D) $10,355
• E) $10,900

---

Definitions:

Need

A requirement essential for an organism's survival or well-being, as well as a strong desire for something.

Want

A desire for something that is not necessarily needed but is desired for personal satisfaction or fulfillment.

Drive Theory

A psychological theory suggesting that motivation is driven by an organism's need to fulfill physiological needs in order to maintain homeostasis.

Gratification

The pleasure, satisfaction, or relief felt when a need, desire, or expectation is fulfilled.