Stanton Inc

question 46

Multiple Choice

Stanton Inc. is considering the purchase of a new machine that will reduce manufacturing costs by $5,000 annually and increase earnings before depreciation and taxes by $6,000 annually. Stanton will use the Modified Accelerated Cost Recovery System (MACRS) method to depreciate the machine, and it has estimated the depreciation expense for the first year as $8,000. Which of the following is the supplemental operating cash flow for the first year? Stanton's marginal tax rate is 40 percent. 

• A)$19,000
• B)$7,800
• C)$6,600
• D)$9,800
• E)$3,000

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Definitions:

Warm Room Temperature

A temperature setting in an indoor environment that feels comfortably warm to the majority of people, typically around 68 to 77 degrees Fahrenheit (20 to 25 degrees Celsius).

Aggressive Behaviour

Actions or patterns of actions aimed at causing harm, intimidation, or asserting dominance over others.

Hitting Incidents

Episodes or occurrences of physical aggression where an individual intentionally strikes another.

Dependent Variable

is the variable in an experiment that is expected to change in response to manipulations in the independent variable.