Merkon Inc A) Merkon's After-Tax Cost of the Purchase Is $5,953 Less

question 8

Multiple Choice

Merkon Inc. must choose between purchasing a new asset for $86,000 or leasing the asset for four years for $27,500 annual rent. The purchased asset would be 3-year recovery property that Merkon could use for four years, after which the asset would have no salvage value. Assuming a 35% tax rate, an 8% discount rate, and no Section 179 deduction or 50% bonus depreciation, which of the following statements is true? $$\begin{array} { c c c c c r } \text { Year } & \text { Cost } & \text { MACRS } & \text { Tax Savings } & \text { Discount } & \text { NPV } \\\mathbf { 0 } & ( \mathbf { 8 6 , 0 0 0 ) } & \mathbf { 2 8 , 6 6 4 } & \mathbf { 1 0 , 0 3 2 } & \mathbf { n } / \mathbf { a } & ( \mathbf { 7 5 , 9 6 8 } ) \\1 & & \mathbf { 3 8 , 2 2 7 } & \mathbf { 1 3 , 3 8 0 } & \mathbf { 9 2 6 } & \mathbf { 1 2 , 3 9 0 } \\\mathbf { 2 } & & \mathbf { 1 2 , 7 3 7 } & \mathbf { 4 , 4 5 8 } & \mathbf { . 8 5 7 } & \mathbf { 3 , 8 2 1 } \\4 & & \mathbf { 6 , 3 7 2 } & \mathbf { 2 , 2 3 0 } & .794 & \underline { 1,771 } \\& & & & & ( \underline { 57,980 } ) \end{array}$$

• A) Merkon's after-tax cost of the purchase is $5,953 less than the after-tax cost of the lease.
• B) Merkon's after-tax cost of the lease is $1,374 less than the after-tax cost of the purchase.
• C) Merkon's after-tax cost of the purchase is $8,226 less than the after-tax cost of the lease.
• D) None of the above

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Ethnic Identity

The aspect of individuals' self-conception and sense of belonging that is related to their culture or racial group.

Discrimination

is the unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or gender.

Oppositional Identity Formation

A process in which individuals develop identities that are in opposition to mainstream or dominant cultural norms, often in response to stigma or marginalization.

Identity Foreclosure

A stage in identity development where an individual commits to an identity without exploring other options.