Your Firm Needs a Computerized Machine Tool Lathe Which Costs

question 32

Multiple Choice

Your firm needs a computerized machine tool lathe which costs $50,000, requires $10,000 in installation, $5,000 in freight charges and another $12,000 in maintenance for each year of its 3-year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 30% and a discount rate of 12%. Calculate the depreciation tax shield for this project in year 1.

• A) $6,499.35
• B) $6,886.00
• C) $5,999.40
• D) $5,554.40

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An obligation to adhere to moral principles and conduct, typically within a professional context, ensuring fairness, honesty, and integrity.

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Standardized rules or guidelines developed to serve as a template or benchmark for legal or professional conduct.

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Gaseous compounds in the Earth's atmosphere that trap heat, contributing to the greenhouse effect and global climate change.

Motor Vehicle

A self-propelled vehicle used for transportation on roads, such as cars, motorcycles, and buses.