A Machine Is Purchased for $500,000 and Is Used Through

question 49

Multiple Choice

A machine is purchased for $500,000 and is used through the end of Year 2.The machine falls under asset class 43 with a capital cost allowance (CCA) rate of 30%.At the end of Year 2,the machine is sold for $75,000.What is the present value of the lost CCA tax shields if the firm's marginal tax rate is 40% and its cost of capital is 5%?

• A)$37,050
• B)$15,180
• C)$37,950
• D)$23,324
• E)$25,714

Understand the concept of the 'balancing point' in the context of mean.

Understand the variability in employee selection processes across organizations.

Recognize the limitations and expenses associated with different selection methods, including interviews.

Identify the timing and purpose of reference checks in the selection process.

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Definitions:

Contingent Reward

A motivational strategy where rewards are given based on the achievement of specific criteria or the performance of certain actions.

Favorable Information

Information that presents a person, company, or product in a positive light, typically used in promotional or persuasive contexts.

Baumeister and Cairns

Refers to researchers who have contributed to the fields of psychology, particularly in exploring self-concept, motivation, and the psychological aspects of sports.

Unfavorable Information

Refers to information that is considered negative or undesirable, often impacting perceptions or decisions negatively.