Your Firm Needs a Machine Which Costs $60,000, and Requires

question 5

Multiple Choice

Your firm needs a machine which costs $60,000, and requires $15,000 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 10 percent. If this machine can be sold for $8,000 at the end of year 5, what is the after-tax salvage value?

• A)$3,456.00
• B)$4,544.00
• C)$5,200.00
• D)$6,409.60

---

Definitions:

Rating Scale

A tool used for evaluating or assessing the performance, attitude, or characteristics of individuals or objects, typically ranging from low to high or poor to excellent.

Consistent Results

The achievement of uniform and predictable outcomes over a period of time, demonstrating stability and reliability in performance.

Performance Appraisals

The regular review of an employee's job performance and overall contribution to a company.