Fool Proof Software Is Considering a New Project Whose Data

question 71

Multiple Choice

Fool Proof Software is considering a new project whose data are shown below.The equipment that would be used has a 3-year tax life,and the allowed depreciation rates for such property are 33%,45%,15%,and 7% for Years 1 through 4.Revenues and other operating costs are expected to be constant over the project's 10-year expected life.What is the Year 1 cash flow? $$\begin{array} { l r } \text { Equipment cost (depreciable basis) } & \$ 48,000 \\\text { Sales revenues, each year } & \$ 60,000 \\\text { Operating costs (excl. depr.) } & \$ 25,000 \\\text { Tax rate } & 35.0 \%\end{array}$$
?

• A) $29,426
• B) $33,387
• C) $28,294
• D) $28,860
• E) $29,709

Recognize the role of taxes and finance at the local and state levels.

Understand how state and local spending is allocated, particularly in education.

Comprehend the principles and types of taxation systems, including regressive, progressive, proportional, and benefits-received taxes.

Recognize the distribution of taxes and government spending across different levels of government.

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Definitions:

Pushbutton

A pushbutton is a simple switch mechanism for controlling some aspect of a machine or a process. They are typically found in industrial, computing, and consumer electronics contexts.

Thermocouple Temperature

The measurement of temperature using a thermocouple, which generates a voltage proportional to the temperature difference between two points.

LED Display

An LED display is a screen or panel comprised of light-emitting diodes used to display information, images, or videos through controlled lighting.

Logic

The systematic study of principles of valid reasoning and inference, or in automation, the rules and algorithms governing the operation of control systems.