A New Machine Will Cost $720,000

question 87

Multiple Choice

A new machine will cost $720,000.It is in a CCA class pool that uses a declining balance rate of 20%.The company's tax rate is 42% and it requires a 12% rate of return on investments.Calculate the present value of the the tax shield the first year assuming the savings occur at year end.

• A)$60,480.00
• B)$54,000.00
• C)$27,000.00
• D)$30,240.00
• E)$37,285.71

---

Definitions:

Infections

The invasion and multiplication of microorganisms such as bacteria, viruses, and parasites that are not normally present within the body and may cause disease or illness.

Microorganism

A simple form of life, commonly made up of a single cell and so small that it can be seen only with a microscope.

Pathogen

A microorganism capable of causing disease.

Prokaryotic Cells

Simple, single-celled organisms without a nucleus or other membrane-bound organelles, such as bacteria.