Your Firm Needs a Computerized Machine Tool Lathe Which Costs

question 105

Multiple Choice

Your firm needs a computerized machine tool lathe which costs $50,000, requires $10,000 in installation 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%. If the lathe can be sold for $7,000 at the end of year 3, what is the after-tax salvage value?

• A) $6,233.80
• B) $6,311.90
• C) $5,927.20
• D) $6,154.20

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Definitions:

Mechanoreceptors

Sensory receptors in the body that respond to mechanical pressures or distortions, such as touch, pressure, stretch, and vibration.

Chemoreceptors

Sensory receptors that respond to chemical stimuli, found in various locations in the body and involved in processes like taste, smell, and respiratory control.

Dementia

A chronic or progressive syndrome marked by the deterioration of cognitive function, affecting memory, thinking, orientation, comprehension, calculation, learning capacity, language, and judgment.

Agitated

A state of increased restlessness or excitement, often displaying as physical or verbal outbursts, which can indicate distress or discomfort.