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

question 78

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 3, the book value of the existing asset is ________. (See Table 11.2)

• A) $21,000
• B) $43,000
• C) $52,000
• D) $80,000

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Definitions:

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning methods.

B.F. Skinner

A renowned psychologist known for his work in behaviorism, emphasizing the role of environmental factors in shaping behavior through reinforcement.

Hans Eysenck

A German-born psychologist known for his work in personality theory and intelligence, including the development of the Eysenck Personality Questionnaire.

Joseph Wolpe

A psychologist known for developing systematic desensitization, a method to reduce patients' phobias and anxieties.