A New Tire Balancing Machine Is Available to Replace an Existing

question 22

Multiple Choice

A new tire balancing machine is available to replace an existing one.The new one will cost $5,092.The old one originally cost $2,594 and was being depreciated over its 3-year life using MACRS.Two years have passed since the old one was purchased.Shipping of the new machine will cost $320.Assume a 40% tax rate.What is the net initial cash flow? Assume the old machine cannot be sold.(Round answer to nearest dollar.)
MACRS Depreciation Rates

• A) $5,258
• B) -$5,258
• C) -$5,412
• D) $5,181
• E) -$5,181

---

Definitions:

Nutritional Status

The condition of the body in terms of the intake, absorption, and utilization of nutrients, influencing overall health and well-being.

Objective Tool

Refers to instruments or methods used to gather or measure data that are not influenced by personal feelings or opinions.

Body Mass Index (BMI)

A numerical calculation using height and weight to estimate body fat and determine weight categories that may lead to health problems.

Kcal Per Gram

A measurement indicating the amount of energy provided by a certain amount of food, expressed in kilocalories per gram.