Propell Inc

question 86

Multiple Choice

Propell Inc.is considering the purchase of a new machine that will cost $178,000,plus an additional $12,000 to ship and install.The new machine will have a 5-year useful life and will be depreciated using the straight-line method.The machine is expected to generate new sales of $85,000 per year and is expected to increase operating costs by $10,000 annually.Propell's income tax rate is 40%.What is the projected incremental cash flow of the machine for year 1?

• A) $54,800
• B) $60,200
• C) $66,350
• D) $68,200

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Definitions:

Internal Integration

The process of ensuring that different departments and functions within an organization work together smoothly and effectively.

External Image

The perception of an organization or individual by those outside of it, influenced by public relations, media representation, and other external communications.

Shared Philosophies

Commonly held beliefs, values, and ideologies among a group of individuals or within an organization.

Cultural Routines

Established patterns of behavior or practices that are characteristic of a particular culture or society.