The Following Data Is Associated with a Proposed Replacement Project

question 72

Multiple Choice

The following data is associated with a proposed replacement project: A machine that originally cost $25,000 and was depreciated on a straight line basis has one year of its expected 5-year life remaining. Its current market value is $12,000. The corporate tax rate is 34%. The cash flow from disposing of the old machine, is:

• A)$12,000.
• B)$ 9,620.
• C)($ 9,620.)
• D)$14,380.

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Definitions:

Assignable Cause

An identifiable factor that causes a change or variation in a process or system, distinguishable from random variation.

Variation

The degree to which data points in a dataset differ from each other and from the mean, indicating the dispersion within the dataset.

Output

The result or product generated by a process or system.

Random Cause

An unpredictable influence that affects the outcome of a process or experiment.