Al's Fabrication Shop Is Purchasing a New Rivet Machine to Replace

question 70

Multiple Choice

Al's Fabrication Shop is purchasing a new rivet machine to replace an existing one.The new machine costs $8000 and will require an additional cost of $1000 for modification and training.It will be depreciated using simplified straight line depreciation over five years.The new machine operates much faster than the old machine and with better quality.Consequently, sales are expected to increase by $2100 per year for the next five years.While it is faster, it is fully automated and will result in increased electricity costs for the firm by $700 per year.It will, however, save about $850 per year in labor costs.The old machine is 20 years old and has already been fully depreciated.If the firm's marginal tax rate is 28%, calculate the after tax incremental cash flows for the new machine for years 1 through 5.

• A)$2698
• B)$450
• C)$2124
• D)$1620

Grasp the concept of damages and their role in tort law.

Understand the nuances of assault and battery within tort law.

Recognize the requirements for negligence and strict liability torts.

Understand the legal implications of actions in tort law.

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Definitions:

Internal Service Departments

Departments within an organization that provide essential services to other departments rather than external customers, such as IT support or human resources.

Inventory Control

The processes and procedures used to manage the ordering, storage, and use of components that a company will use in the production process or the management of stock available for sale.

Investment Turnover

A ratio used to measure the efficiency of a company's use of its investments in generating sales revenue, indicating how well the company is utilizing its assets.

Return On Investment

A metric for determining an investment's profitability or efficiency, achieved by dividing the net profit by the investment's total cost.