Firm X Is Considering the Replacement of an Old Machine

question 112

Multiple Choice

Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $18,000 but the book value is $32,000. The firm's tax rate for ordinary income is 30%. What is the net cash outflow for the new machine after considering the sale of the old machine?

• A) $47,800
• B) $38,000
• C) $45,000
• D) $40,100

Apply modern rules of validity to various logical statements.

Describe the structure and figure of syllogisms based on given propositions.

Use Venn diagrams to represent categorical propositions and syllogisms.

Analyze and interpret the information shown in Venn diagrams.

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Definitions:

Substitutes

Goods or services that can be used in place of each other, where the increase in the price of one leads to an increase in demand for the other.

Price Increases

Occurs when the cost of goods or services rises over a period of time.

Demand for Good

Demand for good refers to the quantity of a product or service that consumers are willing and able to purchase at various prices during a given period.

Equilibrium Quantity

Equilibrium quantity is the quantity of goods or services supplied and demanded at the equilibrium price, where the quantity demanded equals the quantity supplied, leading to market stability.