A Local Day Spa Is Considering Investing in a Machine

question 50

Multiple Choice

A local day spa is considering investing in a machine that costs $60 000.The machine is expected to generate revenues of $25 000 per year for five years.The machine would be depreciated using the straight-line method over its five-year life and have no salvage value.The company considers the impact of income taxes in all of its capital investment decisions.The company has a 35 per cent income tax rate and desires an after-tax rate of return of 14 per cent on its investment.The net present value of the machine is:

• A) $36 985
• B) $10 207
• C) $25 828
• D) $22 566

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Definitions:

Meeting Purposes

The objectives or goals that a meeting aims to achieve, which guide its agenda and discussions.

Face-to-face Meetings

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New Technologies

The latest advancements in tools, equipment, and techniques that improve the way tasks are performed, products are made, or services are delivered.

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An Effective Meeting Participant actively contributes to discussions, adheres to the agenda, and collaborates towards achieving meeting objectives.