Suppose a Machine Costs $20,000 Now,has an Expected Life of Eight

question 82

Multiple Choice

Suppose a machine costs $20,000 now,has an expected life of eight years,and will require a $7,000 overhaul at the end of the third year.If the tax rate is 40%,what would be the after-tax cost of this overhaul?

• A) $2,800.
• B) $4,200.
• C) $8,000.
• D) $12,000.