Charlotte Computer Services Is Considering Purchasing Equipment at $100 000

question 100

Multiple Choice

Charlotte Computer Services is considering purchasing equipment at $100 000. It is anticipated the equipment will have a useful life of five years. It will be depreciated on a straight-line basis. Operating revenue is expected to be $74 000 per annum and operating expenses $25 000 per annum. The equipment is subject to an investment allowance of 10 per cent and the tax rate is 30 per cent. The after-tax hurdle rate is 12 per cent. The reduction in tax due to the investment allowance is:

• A) $10 000.
• B) $3000.
• C) $7000.
• D) $8700.

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Definitions:

Interpersonal Level

pertains to interactions and relationships between individuals, focusing on communication, understanding, and social dynamics.

Rearranging Facilities

The process of modifying the layout or organization of physical spaces in a workplace to improve functionality and efficiency.

Resolving Conflicts

The process of finding a peaceful solution to a disagreement among parties.

Workflows

The sequence of processes through which a piece of work passes from initiation to completion in a business or operational setting.