Crighton Industries Is Considering the Purchase of a New Machine

question 36

Multiple Choice

Crighton Industries is considering the purchase of a new machine that will cost $250,000,plus an additional $10,000 to ship and install.The new machine will have a 5-year useful life and will be depreciated to zero using the straight-line method.The machine is expected to have a salvage value of $30,000 at the end of year five.Crighton's income tax rate is 40%.The additional net working capital from this project of $50,000 is expected to return to its pre-project level upon termination.What is the non-operating terminal cash flow of the machine?

• A) -$32,000
• B) $48,000
• C) $68,000
• D) $80,000

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Definitions:

Darwin's Contention

Charles Darwin's argument, primarily in "On the Origin of Species," that species evolve over time through natural selection.

Facial Expressions

Visible changes in the face that communicate emotion, reactions, or intention without using words.

Baby's Facial Expressions

The non-verbal cues babies use to communicate their needs, emotions, and responses to stimuli.

Parents

The caregivers of a child, who may be biological or adoptive mothers and fathers.