Your Firm Needs a Computerized Machine Tool Lathe That Costs

question 114

Multiple Choice

Your firm needs a computerized machine tool lathe that costs $50,000, requires $10,000 in installation, and another $12,000 in maintenance for each year of its three-year life. After three years, this machine will be replaced. The machine falls into the MACRS three-year class life category. Assume a tax rate of 30 percent and a discount rate of 12 percent. Calculate the depreciation tax shield for this project in year 1.

• A)$7,199.20
• B)$8,886.00
• C)$5,999.40
• D)$6,554.40

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Definitions:

Mental Ability

Refers to the intellectual capability and efficiency of the brain to process information, solve problems and make decisions, analogous to cognitive ability.

Bender Gestalt II

A psychological assessment tool used to evaluate visual-motor integration skills, often used to detect developmental disorders.

Scoring System

A set of criteria used to evaluate performance or outcomes, typically in tests, competitions, or assessments.

Reliability and Validity

Key measures in research and testing, where reliability refers to consistency across time or different observers, and validity measures the accuracy and truthfulness of a test or research finding.