Your Firm Needs a Machine Which Costs $500,000, and Requires

question 77

Multiple Choice

Your firm needs a machine which costs $500,000, and requires $15,000 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 35 percent and a discount rate of 10 percent. If this machine can be sold for $50,000 at the end of year 3, what is the after-tax salvage value?

• A)$12,250.00
• B)$17,500.00
• C)$32,500.00
• D)$45,467.50

---

Definitions:

T Test

A statistical test used to compare the means of two groups, determining if there is a significant difference between them.

T Test

A statistical test used to determine if there is a significant difference between the means of two groups, which may be related in certain features.

Mean Scores

The average value of a set of numbers, calculated by dividing the sum of all values by the number of values.

Standard Error

The statistical measure that describes the accuracy with which a sample represents a population, often used in inferential statistics.