A Company Is Considering Investing in a Piece of Machinery

question 92

Multiple Choice

A company is considering investing in a piece of machinery that will cost $550,000.It will provide an additional $160,000 in sales each year and its annual cash operating expenses are expected to be $52,000.Management plans to depreciate the machine on a straight-line basis over a 10-year life with no estimated salvage value.The company has a 40% tax rate.How much is net annual operating cash flow expected if the machinery is acquired?

• A)$64,800
• B)$96,000
• C)$86,800
• D)$118,000

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The proportion of a population that is affected by a certain condition, disease, or characteristic at a specific time.

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A person who is sexually attracted to individuals of the opposite sex.