A New Machine Can Be Purchased for $1,800,000

question 83

Multiple Choice

A new machine can be purchased for $1,800,000.It will cost $35,000 to ship and $15,000 to fine-tune the machine.The new machine will replace an older version that is fully depreciated and will be sold for $200,000.The firm's income tax rate is 35%.What is the initial outlay for capital budgeting purposes?

• A) $1,580,000
• B) $1,630,000
• C) $1,650,000
• D) $1,720,000

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Definitions:

Mandible

The lower jawbone, which is the largest, strongest bone in the face, serving for the reception of the lower teeth and providing structure for facial shape and motion.

Maxillary

Relating to the upper jawbone, which forms part of the face and holds the upper teeth.

Fontanels

Soft spots on a baby's skull where the bones have not yet fused, allowing for flexibility during birth and brain growth.

Sella Turcica

A saddle-shaped depression in the sphenoid bone of the skull that houses the pituitary gland.