A Machine Is Expected to Produce Annual Savings in Cash

question 40

Multiple Choice

A machine is expected to produce annual savings in cash operating costs of $400,000 for the next six years.If the company has a 10% after-tax hurdle rate and is subject to a 30% income tax rate,the correct discounted net cash flow would be:

• A)$522,600.
• B)$947,520.
• C)$1,219,400.
• D)$1,742,000.
• E)some other amount.

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Definitions:

Freud

Sigmund Freud was an Austrian neurologist known for founding psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Aristotle

An ancient Greek philosopher and polymath whose works covered a wide range of subjects, including physics, metaphysics, poetry, theater, music, logic, rhetoric, linguistics, politics, government, ethics, biology, and zoology.

Penfield

A reference to Wilder Penfield, a neurosurgeon whose mapping of the brain significantly advanced the understanding of cerebral functions.

Recognition

The cognitive process of identifying and acknowledging the presence or existence of something previously observed or experienced.