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

question 48

Multiple Choice

Use the following information to answer the following question(s) .
Delta Inc.is considering the purchase of a new machine which is expected to increase sales by $10,000 in addition to increasing non-depreciation expenses by $3,000 annually.Due to the sales increase,Delta will need to increase working capital by $1,000 at the beginning of the project.Delta will depreciate the machine using the straight-line method over the project's five year life to a salvage value of zero.The machine's purchase price is $20,000.The firm has a marginal tax rate of 34 percent,and its required rate of return is 12 percent.
-The machine's initial cash outflow is

• A)$20,000.
• B)$21,000.
• C)$27,000.
• D)$23,000.

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Definitions:

Distinctive Features

Unique characteristics or attributes that distinguish one object, person, concept, or phenomenon from others.

Survey Results

The collected data or findings from questionnaires designed to gather information on a specific topic or opinion.

Downward Communication

The flow of information from higher levels of organizational hierarchy (like managers) to lower levels (like employees).

Horizontal Communication

Information exchange between individuals or departments at the same level within an organization, aimed at coordinating tasks and activities.