A Company Can Buy a Machine That Is Expected to Have

question 50

Multiple Choice

A company can buy a machine that is expected to have a three-year life and a $30,000 salvage value. The machine will cost $1,800,000 and is expected to produce a $200,000 after-tax net income to be received at the end of each year. If a table of present values of 1 at 12% shows values of 0.8929 for one year, 0.7972 for two years, and 0.7118 for three years, what is the net present value of the cash flows from the investment, discounted at 12%?

• A) $118,855
• B) $583,676
• C) $629,788
• D) $705,391
• E) $1,918,855

Grasp the distinct legal and tax features of S corporations.

Learn about the formation and benefits of consortiums, cooperatives, and syndicates in business.

Understand the legal identity, liability, and tax obligations of corporations.

Analyze joint venture agreements and their enforceability.

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Definitions:

Space-Based Media

Media content and services delivered via satellite or other space-based technologies, offering communication and entertainment on a global scale.

Time-Based Media

Art forms that are experienced over time, such as video, film, audio, and digital media, which require the element of time for their full appreciation and understanding.

Marshall McLuhan

A Canadian philosopher and communication theorist best known for coining the expression "the medium is the message" and for his studies on media theory.

Media Endorsement

The support or approval of a product, service, or idea by a recognized media outlet, often influencing public opinion and behavior.