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question 2

Essay

Use the information for the question(s)below.
Kinston Industries is considering investing in a machine that will cost $125,000 and will last for three years.The machine will generate revenues of $120,000 each year and the cost of goods sold will be 50% of sales.At the end of year three the machine will be sold for $15,000.The appropriate cost of capital is 10% and Kinston is in the 21% tax bracket.
-Assume that Kinston's new machine will be depreciated straight line to a salvage value of $5000 at the end of year three.What is the after-tax salvage value of this project?

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Definitions:

Prenatal

Relating to the period or development before birth; during pregnancy.

Urethral Meatus

The external opening of the urethra, through which urine exits the body in both males and females, and also serves as a passage for semen in males.

Hypospadias

A congenital condition in males where the urethra opens on the underside of the penis rather than at the tip.

Phimosis

A condition where the foreskin of the penis cannot be fully retracted over the glans, often requiring medical attention in severe cases.