Matty's Place Is Considering the Installation of a New Computer

question 84

Multiple Choice

Matty's Place is considering the installation of a new computer system that will cut annual operating costs by $12,000.The system will cost $42,000 to purchase and install.This system is expected to have a life of 5 years and will be depreciated to zero using straight-line depreciation.Ignore bonus depreciation.What is the amount of the earnings before interest and taxes for each year of this project if the tax rate is 21 percent?

• A)−$20,400
• B)$5,400
• C)$3,600
• D)$12,000
• E)$8,400

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Definitions:

Fine Motor Skills

Motor skills related to the development and coordination of small muscles, such as those that move the fingers and eyes.

Gross Motor Skills

Physical abilities involving large body movements, such as walking, jumping, and throwing, which are crucial for mobility and coordination.

Childhood Obesity

A condition characterized by a child having excess body fat that negatively affects their health and well-being, often resulting from a combination of genetic, behavioral, and environmental factors.

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, such as coronary artery disease, hypertension, and heart failure.