(Ignore Income Taxes in This Problem

question 120

Multiple Choice

(Ignore income taxes in this problem.) A company is considering buying a machine that costs $500,000,has a useful life of ten years,and is depreciated over its useful life by the straight-line method.The salvage value of the machine at the end of ten years will be $40,000.This machine will replace an old machine that is fully depreciated; the old machine has a salvage value of $75,000 now.If the simple rate of return of this investment is 12.7%,then the anticipated annual incremental net operating income from this machine for each of the next ten years is:

• A) $100,000
• B) $63,825
• C) $53,975
• D) $46,380

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Definitions:

Memory Consolidation

The process by which initial fragile memory states are transformed into stable, long-term memories.

Intoxicated With Alcohol

Refers to a temporary state resulting from the consumption of alcohol in which cognitive, physical, and emotional faculties are impaired.

REM Sleep

A stage of sleep characterized by rapid eye movements and is associated with dreaming.

Sympathetic Nervous System

The division of the autonomic nervous system that arouses the body, mobilizing its energy.