AFB CorpNeeds to Replace an Old Lathe with a New,more Efficient

question 49

Multiple Choice

AFB Corp.needs to replace an old lathe with a new,more efficient model.The old lathe was purchased for $50,000 nine years ago and has a current book value of $5,000.(The old machine is being depreciated on a straight-line basis over a ten-year useful life.) The new lathe costs $100,000.It will cost the company $10,000 to get the new lathe to the factory and get it installed.The old machine will be sold as scrap metal for $2,000.The new machine is also being depreciated on a straight-line basis over ten years.Sales are expected to increase by $8,000 per year while operating expenses are expected to decrease by $12,000 per year.AFB's marginal tax rate is 40%.Additional working capital of $3,000 is required to maintain the new machine and higher sales level.The new lathe is expected to be sold for $5,000 at the end of the project's ten-year life.What is the project's terminal cash flow?

• A) $3,000
• B) $5,000
• C) $6,000
• D) $8,000

Identify key disclosures required for operating segments according to IFRS 8.

Understand the significance of different thresholds in determining reportable segments.

Grasp the concept and application of discrete and integral approaches in interim financial reporting under IAS 34.

Recognize the requirements for financial reporting in private companies versus public companies.

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Definitions:

Daily Fluid Intake

The total amount of fluid consumed in a day, including water and other beverages, essential for maintaining hydration and bodily functions.

Hematocrit

The ratio of the volume of red blood cells to the total volume of blood, often measured as a percentage and used to diagnose and monitor various health conditions.

Intravascular Fluid

Refers to the fluid within blood vessels, consisting primarily of plasma, which is the liquid component of blood.

Transcellular Fluid

Fluid found within specific compartments of the body, such as cerebrospinal, pleural, peritoneal, and synovial fluids, separated by epithelial or endothelial barriers.