Table 11.4 Computer Disk Duplicators, Inc. Has Been Considering Several Capital Investment

question 78

Multiple Choice

Table 11.4
Computer Disk Duplicators, Inc. has been considering several capital investment proposals for the year beginning in 2004. For each investment proposal, the relevant cash flows and other relevant financial data are summarized in the table below. In the case of a replacement decision, the total installed cost of the equipment will be partially offset by the sale of existing equipment. The firm is subject to a 40 percent tax rate on ordinary income and on long-term capital gains. The firm's cost of capital is 15 percent.
*Not applicable
-For Proposal 1, the depreciation expense for year 1 is ________. (See Table 11.4)

• A) $110,400
• B) $115,200
• C) $150,000
• D) $300,000

---

Definitions:

Precipitation

Any form of water, liquid or solid, that falls from the atmosphere and reaches the ground.

Biotic Factor

A living component of an ecosystem, such as plants, animals, and microorganisms, that affects and interacts with other organisms in their environment.

Bacteria

Microscopic single-celled organisms that inhabit virtually all environments on Earth, including soil, water, and living organisms, playing critical roles in various ecosystems.

Aquatic Life Zone

Areas in water bodies, such as lakes, rivers, and oceans, that support life, including various plants, animals, and microorganisms.