Martin Tartans, Inc

question 38

Multiple Choice

Martin Tartans, Inc.is considering the purchase of a new argyle sock knitting machine to replace a less automated one.The new machine will cost $220,000 plus $30,000 for shipping and installation.The machine being replaced was purchased five years ago for $140,000 and depreciated as a 7-year MACRS property.It can be sold for $24,000.Boll Mills has a marginal tax rate of 35%.Compute the NINV for the project.Use the rounded MACRS schedule listed below:
(7-Year Depreciation Schedule: 14%, 25%, 18%, 12%, 9%, 9%, 9%, 4%)

• A)$250,000
• B)$226,000
• C)$221,298
• D)$223,620

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Definitions:

Tunica Intima

Innermost coat of a blood vessel; consists of endothelium, a lamina propria, and an inner elastic membrane.

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A bubbling sound like that of water flowing around obstructions, often associated with digestion or fluid movement in the respiratory paths.

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