Bing Services Is Now in the Final Year of a Project.The

question 21

Multiple Choice

Bing Services is now in the final year of a project.The equipment originally cost $20,000.The existing UCC is $5,000.Bing can sell the used equipment today for $6,000,and its tax rate is 40%.What is the equipment's net after-tax salvage value for use in a capital budgeting analysis? Note that the recapture is fully taxable.

• A)$5,320
• B)$5,600
• C)$5,880
• D)$6,174

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Definitions:

Bid Competition

A procurement process where vendors or contractors submit their proposals or bids, competing to win a contract based on price, quality, and/or service criteria.

Upward Pressure

Forces or conditions within a market that cause prices to rise, often due to factors like increased demand, higher production costs, or supply shortages.

Would-Be Buyers

Potential customers who have shown interest in purchasing a product or service but have not yet made a purchase.

Competitive Auction

A bidding process where various buyers compete to acquire goods or services by offering increasingly higher prices.