Consider a Machine That Costs $115,000 Now and Has a Useful

question 147

Multiple Choice

Consider a machine that costs $115,000 now and has a useful life of seven years.This machine will require a major overhaul at the end of the fourth year that will cost X dollars.If the tax rate is 40%,and if the after-tax cash outflow for this overhaul is $3,600,what is the amount of X in dollars?

• A) $1,440.
• B) $2,160.
• C) $6,000.
• D) $9,000.

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Definitions:

Transformational Leadership

Leadership that is inspirational and arouses extraordinary effort and performance.

Personal Reference

The use of personal experiences, feelings, or opinions by an individual to explain or support a point during communication.

Arouse Enthusiasm

The act of generating excitement, motivation, or keen interest in individuals or groups towards a certain activity, goal, or subject.

Vroom-Jago Leader-Participation Model

A leadership theory that suggests the effectiveness of a decision-making process is influenced by the leader's involvement and the participation of subordinates.