Your Firm Has Purchased an Injection Molding Machine at a Cost

question 5

Essay

Your firm has purchased an injection molding machine at a cost of $100,000. The machine's useful life is
estimated to be 8 years. Your accounting department has estimated the capital cost for this machine at about
$25,455 per year. If your firm's MARR is 20%, how much salvage value do you think the accounting department
assumed at the end of 8 years?

---

Definitions:

Social Performance

A measure of how well an organization achieves social goals, such as community support and employee satisfaction.

Triple Bottom Line

Reporting that includes financial performance, social performance, and environmental performance.

Motivated Reasoning

The tendency for a person to see what he or she wants to see in data.

Cognitive Bias

A consistent tendency to stray from normal or logical reasoning in making judgments, leading to drawing conclusions about others and situations in an unreasonable way.