Braxton Manufacturing Is Considering the Purchase of New Computerized Equipment

question 30

Multiple Choice

Braxton Manufacturing is considering the purchase of new computerized equipment.The machine costs $85,000 and would generate $22,000 in annual cost savings over its 5-year life.At the end of 5 years, the equipment would have a $5,000 salvage value.Braxton's required rate of return is 12%.Using the interest tables, the machine's net present value is nearest

• A)($2,857).
• B)($5,694).
• C)$79,306.
• D)$110,000.

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The national government of a federated state, which is the central authority governing over all the regions or states that comprise the nation.

Unemployment Program

A government initiative providing financial assistance and support services to eligible individuals who are temporarily out of work.

FICA-OASDI Tax

Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance tax; a payroll tax that funds Social Security and Medicare in the United States.

FICA-Medicare Tax

A payroll tax deducted from employee wages and paid by both employees and employers to fund Medicare.