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

question 69

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 depreciation rates below.The firm expects to operate the machine for 4 years and then to sell it for $2,500.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? $$\begin{array} { c c } \text { Year } & \text { Depreciation Rate } \\\hline 1 & 0.20 \\2 & 0.32 \\3 & 0.19 \\4 & 0.12 \\5 & 0.11 \\6 & 0.06\end{array}$$
?

• A) $4,508
• B) $4,998
• C) $5,488
• D) $4,900
• E) $4,655

---

Definitions:

Motivators

Internal or external factors that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject, or to make an effort to attain a goal.

Buyer Persona

A semi-fictional representation of your ideal customer based on market research and real data about your existing customers.

Customer Demographics

The statistical characteristics of a business's customers, including age, gender, income level, education, and other factors useful for market segmentation and targeting.

Psychographics

Psychographics pertain to the study of consumer behavior based on psychological traits, lifestyle choices, and personal values to inform marketing strategies.