Your Firm Needs a Computerized Machine Tool Lathe That Costs

question 33

Multiple Choice

Your firm needs a computerized machine tool lathe that costs $50,000 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. If the lathe can be sold for $6,000 at the end of year 3, what is the after-tax salvage value?

• A)$3,470.50
• B)$4,344.50
• C)$5,499.50
• D)$5,311.50

Identify the characteristics and predictors of prejudice against marginalized groups.

Understand the concept of ambivalent racism and the conflicting values that contribute to it.

Realize the influence of stereotypes on societal perceptions and attitudes.

Explore the nature and impact of institutional discrimination.

---

Definitions:

Initial Cash Outflow

The initial amount of money paid out or expended, typically for an investment or purchase, before any returns are considered.

Required Return

The minimum rate of return an investor expects to achieve by investing in a particular asset or project.

Required Rate

The least yearly interest rate that persuades individuals or entities to dedicate capital to a distinct project or investment opportunity.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time. It's used in capital budgeting to assess the profitability of an investment or project.