Your Firm Needs a Machine Which Costs $90,000, and Requires

question 104

Multiple Choice

Your firm needs a machine which costs $90,000, and requires $30,000 in maintenance for each year of its five-year life. After five years, this machine will be replaced. The machine falls into the MACRS five-year class life category. Assume a tax rate of 35 percent and a discount rate of 13 percent. What is the depreciation tax shield for this project in year 5?

• A)$471.74
• B)$1,347.84
• C)$3,628.80
• D)$6,739.20

---

Definitions:

Attribute

A quality or feature regarded as a characteristic or inherent part of someone or something.

Social Influence

An interaction process in which one person’s behavior causes another person to change an opinion or to perform an action that he or she would not otherwise do.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something.

Effectiveness

The degree to which objectives are achieved and the extent to which targeted problems are solved, in various contexts including business, therapy, and medicine.