Table 11.2 Computer Disk Duplicators, Inc. Has Been Considering Several Capital Investment

question 101

Multiple Choice

Table 11.2
Computer Disk Duplicators, Inc. has been considering several capital investment proposals for the year beginning in 2014. For each investment proposal, the relevant cash flows and other relevant financial data are summarized in the table below. In the case of a replacement decision, the total installed cost of the equipment will be partially offset by the sale of existing equipment. The firm is subject to a 40 percent tax rate on ordinary income and on long-term capital gains. The firm's cost of capital is 15 percent.
________________________________________________________ *Not applicable
-For Proposal 2, the incremental depreciation expense for year 2 is ________. (See Table 11.2)

• A) $16,800
• B) $26,400
• C) $38,400
• D) $60,000

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Definitions:

Workplace Interactions

The various ways in which employees communicate, collaborate, and engage with each other within a professional setting.

Present Performance

An evaluation of current achievements or outcomes in a given task or activity.

Goal-Setting Model

A framework that emphasizes the importance of setting specific, measurable, achievable, relevant, and time-bound goals to enhance motivation and performance.

Achieve Goal

The successful accomplishment or attainment of specific objectives or desired outcomes.