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A Digital Assembly System That Costs $160,000 Is Expected to Operate

question 91

Multiple Choice

A digital assembly system that costs $160,000 is expected to operate for 8 years. The estimated salvage value at the end of 8 years is $12,000. The system is expected to save the company $38,000 in labor costs before taxes and depreciation. The company will depreciate this system on a 5-year MACRS schedule. If the firm's cost of capital is 12% and its marginal tax rate is 35%, compute the NPV for the project. (Note: Requires MACRS tables.)

Know how genetic variations like single nucleotide polymorphisms (SNPs) and short tandem repeats (STRs) can be identified and used in genetic analysis.

Understand the role of genetic mutations in the phenotypic expression of diseases, such as phenylketonuria (PKU) and Duchenne muscle dystrophy.

Recognize the protective mechanisms of bacteria against foreign DNA, including restriction modification systems.

Grasp the concept of multifactorial diseases and their complexity in relation to genetic and environmental factors.

Definitions:

Total Amount

The aggregate sum resulting from the addition of numbers, amounts, objects, etc.

Ordinary Interest

Interest calculation based on a 360-day year, often used in banking and finance, as opposed to real interest which is based on a 365-day year.

Exact Interest

Interest calculated based on a 365-day year or actual number of days in a loan term, providing a precise calculation of interest charges.

Ordinary Interest

Interest calculated on the basis of a 360-day year, commonly used in banking and bond markets.