Use the Following Information to Answer the Question(s)below

question 58

Multiple Choice

Use the following information to answer the question(s) below.
(Include the MACRS Table from the Appendix. )
Casa Grande Farms is considering purchasing multiple tractors for a total purchase price of $540,000.These tractors are expected to generate EBITDA of $250,000 for each of the next three years.Casa Grande Farms has a 35% tax rate and has a cost of capital of 10%.
-Assuming that Casa Grande Farms depreciates these tractors straight line over the three year life,then the NPV of buying the tractors is closest to:

• A)20,785
• B)36,225
• C)81,715
• D)513,235

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Status Quo

The existing state of affairs at a particular time, especially concerning social or political issues.

Public Assistance

Government programs designed to provide financial aid to individuals or families in need, often targeting the poor, elderly, disabled, and unemployed.

New Deal

An assortment of programs, infrastructure projects, economic reforms, and policies put into action by President Franklin D. Roosevelt in the 1930s in the United States, designed to facilitate recovery from the Great Depression.

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Criteria or policies that unfairly exclude certain individuals or groups from qualifying for services, rights, or positions based on prejudiced distinctions.