Matty's Place Is Considering the Installation of a New Computer

question 69

Multiple Choice

Matty's Place is considering the installation of a new computer system that will cut annual operating costs by $12,000.The system will cost $48,000 to purchase and install.This system is expected to have a 5-year life and will be depreciated to zero using straight-line depreciation.What is the amount of the earnings before interest and taxes for this project?

• A)-$9,600
• B)$1,000
• C)$2,400
• D)$11,000
• E)$20,600

---

Definitions:

Demographics

The study of population statistics.

Population Statistics

The collection, analysis, and interpretation of data regarding the characteristics of population groups.

HR Trends

Emerging patterns and developments in the field of human resources that impact how organizations manage their workforce.

External Environment

All factors outside of an organization that can affect its performance, including economic, social, political, and technological influences.