A Machine Is Expected to Produce Annual Savings in Cash

question 97

Multiple Choice

A machine is expected to produce annual savings in cash operating costs of $400,000 for the next six years.

If the company has a 10% after-tax hurdle rate and is subject to a 30% income tax rate, the correct discounted net cash flow would be:

• A) $522,600.
• B) $947,520.
• C) $1,219,400.
• D) $1,742,000.
• E) None of the answers is correct.

---

Definitions:

Crisis

A critical or tumultuous situation that requires immediate attention and action to manage and mitigate its effects.

Lockdown Mode

A security feature on devices that restricts the functionality and access to data to protect against potential threats.

Ethical Outcomes

Results or consequences of actions that are considered morally right and beneficial in terms of ethical standards.

Legal Outcomes

The results or consequences of legal actions or proceedings.