Your fiRm Needs a Computerized Line-Boring Machine Which Costs $80,000

question 284

Multiple Choice

Your firm needs a computerized line-boring machine which costs $80,000, and requires $20,000 in maintenance for each year of its three year life. After three years, the salvage value will be zero.
The machine falls into the Class 10 equipment category (CCA rate 30%) . Assume a tax rate of 34%
And a discount rate of 10%.
What is the project's EAC?

• A) -$2,374
• B) -$32,905
• C) -$37,539
• D) -$53,667
• E) -$61,964

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Definitions:

Dishonoring

Failing to show respect or reverence for someone or something; treating with a lack of dignity or esteem.

Turner Syndrome

A genetic disorder affecting females, characterized by the partial or complete absence of one of the X chromosomes, leading to various developmental issues.

Gonadal Dysgenesis

A developmental disorder characterized by the incomplete development of the gonads, which can lead to a variety of reproductive and hormonal deficiencies.

Androgen Insensitivity Syndrome

A genetic condition where a person who is genetically male is resistant to male hormones (androgens) and thus has some or all of the physical traits of a woman, but the genetic makeup of a man.