Your Firm Needs a Computerized Machine Tool Lathe Which Costs

question 59

Multiple Choice

Your firm needs a computerized machine tool lathe which costs $50,000 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 $6,000 at the end of year 3, what is the after-tax salvage value?

• A) $3,470.50
• B) $4,344.50
• C) $5,499.50
• D) $5,311.50

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Definitions:

Information Processing

The approach to psychology that treats the mind as a computer, focusing on how people process, store, retrieve, and manipulate information.

Environmental Influences

External factors that can affect an individual's behavior, development, and lifestyle, including social, cultural, and physical environments.

Gender Constancy

The understanding that an individual's gender identity is fixed and does not change over time or due to external appearances.

Contextual Explanation

An interpretation or clarification that considers the surrounding circumstances or factors affecting a specific situation or event.