Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 34 2 pts consider a $40,000 machine that

Question 34 2 pts Consider a $40,000 machine that will reduce pretax operating costs by...

70.2K

Verified Solution

Question

Accounting

image

Question 34 2 pts Consider a $40,000 machine that will reduce pretax operating costs by $12,000 per year over a 5-year period. Assume no changes in net working capital and a zero-scrap value after five years. For simplicity, assume straight-line depreciation to zero, a marginal tax rate of 34 percent, and a required return of 10 percent. The net present value of acquiring this machine is: $83. $167. $334. $1,064

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students