A Firm Is Considering Investing in a New Machine That $$07,692
D)$234,000

question 31

Multiple Choice

A firm is considering investing in a new machine that will cost $600,000 and will be depreciated straight-line over five years.If the firm's marginal tax rate is 39%,what is the annual depreciation tax shield of purchasing the machine?

• A)$120,000
• B)$46,800
• C)$$07,692
• D)$234,000

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Definitions:

Transfer of Behaviour

The application of learned skills or behaviors from one context to another, which is a key objective in training and education.

Behaviour Modelling

A training method that involves demonstrating desired behaviors and allowing learners to practice and replicate these behaviors to learn new skills.

Worksite

A location where professional work activities are conducted, often referring to offices, construction sites, or any place of employment.

Off-The-Job Training

Training that occurs outside of the workplace, such as courses, workshops, or formal education, aimed at enhancing the employee’s skills and knowledge.