In a Net Present Value Analysis of an Equipment Upgrade

question 16

Multiple Choice

In a net present value analysis of an equipment upgrade using a 30% tax rate, what amount of cash savings would have the same present value as a $168,000 depreciation deduction?

• A) $35,280
• B) $50,400
• C) $72,000
• D) $117,600

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Definitions:

Cognitive Dissonance Theory

A theory proposing that people experience discomfort (dissonance) when their beliefs or behaviors are inconsistent, often leading to a change in one to reduce the dissonance.

Cannon-Bard Theory

A theory of emotion that argues emotions and physiological responses occur simultaneously and independently, rather than one causing the other.

James-Lange Theory

A theory of emotion suggesting that emotions occur as a result of physiological reactions to events, implying that physiological arousal precedes the experience of emotion.

Sexual Orientation

Sexual orientation refers to a person's pattern of emotional, romantic, or sexual attraction to others, based on their gender. It exists on a spectrum and includes heterosexuality, homosexuality, bisexuality, and more.