The Weis Corp

question 1

Multiple Choice

The Weis Corp. purchased a new conveyor system to replace an older less automated system. The old system, which was 10 years old, was being depreciated on a straight-line basis over its 20-year life at $25,000 per year. The new system will be depreciated as a 7-year asset for MACRS purposes. The more efficient machine, which costs $520,000 installed, will reduce operating costs by $74,000 per year. Compute the net cash flows in year 3 for the new system. Assume a 40% tax rate. Use the rounded MACRS schedule listed below:
(7-Year Depreciation Schedule: 14%, 25%, 18%, 12%, 9%, 9%, 9%, 4%)

• A) $71,840
• B) $80,779
• C) $68,600
• D) $149,917

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Definitions:

Tectopulvinar System

A neural pathway involved in visual processing, linking the superior colliculus to the thalamus and visual cortex.

Topographic Organization

Neural spatial representation of the body or areas of the sensory world perceived by a sensory organ.

Visual-Form Agnosia

A brain disorder where the person cannot identify objects even though their vision is intact.

Optic Nerve

A paired nerve that transmits visual information from the retina to the brain.